Harvest Midstream signs $1-billion deal for certain MPLX natural gas gathering, processing assets
Key Highlights
- Harvest Midstream will acquire gas gathering pipelines and processing assets in the Rockies from MPLX for $1 billion.
- The assets include about 700 miles of pipelines in the Uinta basin and 800 miles in the Green River basin, with combined processing capacity exceeding 845 MMcfd.
- Harvest will dedicate about 12,000 b/d of NGLs to MPLX for 7 years starting in 2028.
- MPLX's strategic focus remains on expanding its Permian and Marcellus assets.
Harvest Midstream, Houston, Tex., has agreed to acquire certain natural gas gathering and processing assets in the Uinta and Green River basins from MPLX LP, Findlay, Ohio, for $1 billion.
The Rockies-area natural gas gathering and processing network to be acquired spans Wyoming, Utah, and Colorado, and support the company's expansion plans, the privately held midstream company said in a release Aug. 27.
"We are executing on a long-term vision to build a scaled, resilient midstream network," said Harvest chief executive officer Jason C. Rebrook.
The Uinta basin assets include about 700 miles of gas gathering pipelines and about 345 MMcfd of active gas processing capacity at the Ironhorse and Stagecoach processing plants with expansion work currently under way, the company continued.
The Green River basin assets service multiple gas fields in Wyoming and include about 800 miles of gas gathering and transportation pipelines and about 500 MMcfd of active gas processing capacity from the Blacks Fork and Vermilion processing plants and 10,000 b/d of fractionator capacity.
Harvest has agreed to dedicate about 12,000 b/d of NGLs from these assets to MPLX for a period of 7 years beginning in 2028, following the expiration of a pre-existing commitment, MPLX said in a separate release Aug. 27.
Following closing of Havest's acquisition of the Rockies assets from MPLX, which is expected in this year’s fourth quarter, Harvest will assume full operational control of the systems.
MPLX's Marcellus, Permian focus
MPLX further said the deal is part of "evaluating the competitive positioning" of its portfolio.
Maryann Mannen, MPLX president and chief executive officer, said the deal "better positions our portfolio for growth, anchored in the Marcellus and Permian basins."
In July, MPLX took a step to expand its Permian assets with a signed agreement to acquire Northwind Delaware Holdings LLC (Northwind Midstream) for $2.375 billion.
Northwind provides sour gas gathering, treating, and processing services in Lea County, NM, through a portfolio that includes over 200,000 dedicated acres, over 200 miles of gathering pipelines, two in-service acid gas injection (AGI) wells at 20 MMcfd, and a third permitted well that will bring its total capacity to 37 MMcfd.
The system currently has 150 MMcf/d of sour gas treating capacity and in-process expansion activity will increase capacity to 440 MMcfd in second-half 2026.
