Enable Midstream Partners LP, Oklahoma City, is expanding its crude oil midstream business in the Anadarko basin and its crude water gathering systems in the Willison basin.
In the Anadarko basin, Enable signed a definitive agreement to acquire Velocity Holdings LLC for $442 million, comprised of 150 miles of pipeline capable with 225,000 b/d of capacity, along with more than 400,000 bbl of owned and leased storage and 26 truck bays capable of unloading more than 100,000 b/d.
Included is Velocity’s 60% interest in a 26-mile pipeline system joint venture with a third party that owns and operates a refinery connected to the Velocity system.
Operations are backed by large area dedications and long-term, fee-based contracts with more than 2 million acres dedicated from shippers, including acreage dedications from top SCOOP and Merge producers. The Velocity system is the only integrated crude oil and condensate gathering and transportation system in the SCOOP and Merge plays. The acquisition is expected to close by Nov. 1, following the satisfaction of remaining preclosing conditions.
In the Williston basin, Enable entered into contractual commitments for expansion of its crude and water gathering systems to support volumes from over 90,000 gross dedicated acres in North Dakota’s Dunn and McKenzie counties under long-term, fee-based agreements.
Subject to future drilling plans, Enable will add up to 72,000 b/d of crude oil gathering design capacity, increasing total Williston basin crude gathering capacity to about 130,000 b/d. Enable expects to start gathering volumes associated with these system expansions in first-half 2019, including volumes from many drilled but uncompleted wells.