Plains All American Pipeline and Noble Midstream Partners have formed a 50/50 joint venture (JV) to acquire Advantage Pipeline which owns a 70-mile, 16-inch crude oil pipeline located in the southern Delaware Basin.
The JV will acquire Advantage for $133 million. The acquisition is subject to regulatory approvals.
The Advantage Pipeline has a capacity of 150,000 barrels per day originating in eastern Reeves County, Texas running through Pecos and Ward Counties, to Crane County, Texas. The Advantage Pipeline also includes approximately 490,000 barrels of combined crude storage at three separate trucking stations.
"Plains is pleased to be entering into this strategic partnership with Noble Midstream Partners in a growing area of the Delaware Basin. The Advantage Pipeline provides area producers with more efficient access to multiple markets through interconnections with PAA's Permian Basin system," said Greg Armstrong, Chairman and CEO of Plains All American.
NBLX will serve as operator and will construct a 15-mile pipeline to deliver crude oil to the Advantage Pipeline from its central gathering facility in the southern Delaware Basin. PAA will construct a pipeline to connect its Wolfbone Ranch facility to the Advantage Pipeline. The connections are estimated to be completed in the second quarter of this year.