WhiteWater Midstream on May 2 announced the execution of multiple transportation and interconnect agreements for its Delaware Basin Agua Blanca pipeline, which is a joint venture between WhiteWater and WPX Energy (NYSE: WPX).
In conjunction with those agreements, MarkWest Energy Partners LP, a wholly owned subsidiary of MPLX LP, and an affiliate of Targa Resources Corp. will join WhiteWater and WPX Energy as joint venture partners in the Agua Blanca pipeline. Approximately 80% of capex will be funded with project level debt.
In addition to the agreements with its new partners, WhiteWater has entered into long-term transportation service agreements with two premier Delaware Basin producers in Culberson County.
“We are extremely excited about our new strategic partners, MPLX and Targa,” Christer Rundlof, WhiteWater’s CEO, said. “Both companies are top tier processors that continue to expand services in the Permian Basin. We look forward to growing Agua Blanca and derivative projects with our strong customer base.”
Agua Blanca now has over 1.1 billion cubic feet per day (Bcf/d) of long-term firm commitments. The pipeline has also continued to expand its connectivity with agreements in place with the following processors: Brazos Midstream, Crestwood Midstream Partners, EnLink Midstream Partners and Medallion Midstream. These agreements will bring total plant processing capacity connected to Agua Blanca to nearly 2.5 Bcf/d, which is expected to increase to 5.0 Bcf/d in the near-term.
WhiteWater Midstream will own a 60% equity interest in Agua Blanca, with WPX Energy, MPLX and Targa owning an equity interest of 20%, 10% and 10%, respectively in the project.
Recommended Reading
Tax Credit’s Silence on Blue Hydrogen Adds Uncertainty
2024-01-31 - Proposed rules for the 45V hydrogen production tax credit leave blue hydrogen up in the air, but producers planning to use natural gas with carbon capture and storage have options.
CERAWeek: Energy Secretary Defends LNG Pause Amid Industry Outcry
2024-03-18 - U.S. Energy Secretary Jennifer Granholm said she expects the review of LNG exports to be in the “rearview mirror” by next year.
US Finalizes Big Reforms to Federal Oil, Gas Drilling
2024-04-12 - Under the new policy, drilling is limited in wildlife and cultural areas and oil and gas companies will pay higher bonding rates to cover the cost of plugging abandoned oil and gas wells, among other higher rates and costs.
From Satellites to Regulators, Everyone is Snooping on Oil, Gas
2024-04-10 - From methane taxes to an environmental group’s satellite trained on oil and gas emissions, producers face intense scrutiny, even if the watchers aren’t necessarily interested in solving the problem.
EU Expected to Sue Germany Over Gas Tariff, Sources Say
2024-04-17 - The German tariff is a legacy of the European energy crisis that peaked in 2022 after Moscow slashed gas flows to Europe and an undersea explosion shut down the Nord Stream pipeline.