WhiteWater Midstream, MPLX LP and West Texas Gas Inc. (WTG) have formed a joint venture (JV) on Aug. 6 to provide NGLs takeaway capacity from MPLX and WTG gas processing plants in the Permian Basin to the NGL fractionation hub in Sweeny, Texas. WhiteWater Midstream’s investment in the JV is backed by Ridgemont Equity Partners, Denham Capital Management and the Ontario Power Generation Inc. Pension Plan.
The JV will provide an optimized approach to pipeline transportation service for NGLs primarily through the utilization of existing infrastructure with limited initial construction. The solution will facilitate future, capital-efficient expansions that meet customer demands in a recovering basin. The JV is supported by volumes from key processing plants with long-term commitments from top-tier Permian producers.
As part of this NGL transportation solution, the JV has entered into multiple capacity arrangements from Orla, TX to Sweeny, TX including an agreement with EPIC Y-Grade Pipeline LP (EPIC) to own an undivided joint interest (UJI) in EPIC’s existing 24-inch NGL pipeline from West Texas to the Eagle Ford Basin.
A Locke Lord team led by John Arnold (Houston) advised WhiteWater Midstream on the fundamental NGL purchase and transportation agreements, and related regulation of NGL produced in the Permian Basin, in conjunction with the formation of a JV with MPLX LP and West Texas Gas Inc., and the acquisition of an undivided joint interest in the EPIC pipeline.
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