Enterprise Products Partners LP, Houston, has increased its stake in certain midstream assets in Texas through deals with Western Midstream Partners LP.
Permian basin assets
In the Permian basin, Enterprise consolidated ownership in certain assets.
Affiliates of Enterprise acquired interests in Whitethorn Pipeline Co. LLC and Enterprise EF78 LLC from affiliates of Western Midstream in a series of debt-free transactions for $375 million in total cash consideration.
Enterprise completed the acquisition of Western’s 20% equity interest in Whitethorn, which owns the 620,000 b/d Midland-to-Sealy portion of the Midland-to-ECHO 1 crude oil pipeline. Enterprise now owns 100% of Whitethorn.
The company also completed the acquisition of Western’s 25% equity interest in EF78, which owns NGL fractionators 7 and 8 in Mont Belvieu, Tex. These fractionators have an aggregate capacity of 170,000 b/d. Enterprise now owns 100% of EF78.
“The pipeline asset serves the prolific Permian basin, and the fractionation assets are integral to our NGL system,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner.
East Texas
Also through a deal with Western Midstream, an Enterprise Products Partners affiliate agreed to acquire member interests in Panola Pipeline Co. LLC in a debt-free transaction for $25 million in cash consideration.
The agreement is for acquisition of Western Midstream’s 15% equity interest in Panola, which owns the 253-mile Panola Pipeline that transports mixed NGLs from natural gas processing plants in East Texas, including Enterprise’s Bulldog cryogenic natural gas processing plant, to multiple destinations, including the partnership’s NGL fractionation complex in Chambers County, Tex. (OGJ Online, Jan. 23, 2020). The pipeline supports the Haynesville and Cotton Valley crude oil and natural gas production areas.
Subject to the rights of other Panola owners to participate in the sale of Western’s interest, upon closing of the deal, Enterprise will own up to 70% of Panola.