Altus Midstream acquires stake in Shin Oak Pipeline

Altus Midstream Co. has closed on a deal to acquire a 33% equity interest in the Enterprise Products Partners LP subsidiary that owns the Shin Oak natural gas liquids pipeline.

Altus Midstream Co. has closed on a deal to acquire a 33% equity interest in the Enterprise Products Partners LP subsidiary that owns the Shin Oak natural gas liquids pipeline.

The 658-mile Shin Oak pipeline transports NGL rising production from multiple basins, including the Permian, to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Tex. Enterprise placed into service the Shin Oak natural gas liquids mainline in February (OGJ Online, Feb. 28, 2019). The 24-in. pipeline has an initial capacity of 250,000 b/d. Supported by long-term customer commitments, the Shin Oak project will ultimately provide as much as 550,000 b/d of capacity, which is expected to be available in this year’s fourth quarter.

NGLs for the Shin Oak system are sourced primarily from Enterprise’s Orla gas processing complex in Reeves County, Tex., which began operations in 2018, as well as dedicated acreage from the Alpine High development (OGJ Online, May 7, 2018).

More in Pipelines