Wednesday 15 February 2017

Noble Midstream Partners LP and Plains All American Pipeline LP have entered a joint venture (JV) agreement to buy the Advantage Pipeline LLC in the Southern Delaware Basin in a deal totaling $133 million.

Each company will own 50% of the Advantage JV, which runs through Pecos and Ward counties, Texas, to Crane County, Texas. The deal speaks to the intensified midstream activity expected in the Permian as midstream infrastructure companies rush to meet expected demand in the basin.

Noble Midstream will operate the 70-mile, 16-inch crude oil line, which has a capacity of 150,000 barrels per day (Mbbl/d). Advantage offers access to Plains’ Midland, Texas, crude network and to Magellan Midstream Partners LP’s Longhorn Pipeline. In fourth-quarter 2016, the line’s throughput was 42 Mbbl/d.