Enterprise Products Partners acquire 50 miles of Permian gas pipelines in $950 million Piñon Midstream deal
(WO) – Enterprise Products Partners L.P. is acquiring Piñon Midstream, LLC, a portfolio company of Black Bay Energy Capital, in a debt-free transaction for $950 million. Piñon Midstream provides natural gas gathering and treating services in the core of the prolific eastern flank of the Delaware Basin in New Mexico and Texas.
Piñon Midstream’s assets include approximately 50 miles of natural gas gathering and redelivery pipelines, five 3-stage compressor stations, 270 million cubic feet per day (“MMcf/d”) of existing hydrogen sulfide and carbon dioxide treating facilities with an expansion to 450 MMcf/d of capacity expected to be completed in the second half of 2025, and two of the highest capacity and deepest acid gas injection (“AGI”) wells in the basin. As part of this transaction, Enterprise is evaluating locations for a third injection well that would support up to 750 MMcf/d of total treating capacity.
“We are excited to announce the acquisition of Piñon Midstream,” said A. J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “We believe the Piñon management team has developed the premier sour natural gas treating system in the Delaware Basin. These assets accelerate our entry into this region by at least three or four years. These assets are highly complementary to our midstream energy system and provide us an excellent entry point into the eastern flank of the Delaware Basin for us to expand our natural gas processing footprint. Our entry will provide producers a choice for reliable and value-added processing services.”
Related News
From Archive
- Emergency rehabilitation brings back Baltimore’s Back River outfall interceptor
- Fatal Shawnee trench collapse linked to Oklahoma contractor’s repeated safety violations, OSHA reports
- CIPP, tunneling pioneer Robert “Bob” Affholder passes
- Editor’s log: The road to rehab intensifies
- Construction worker dies after being found unconscious in trench box
- CIPP, tunneling pioneer Robert “Bob” Affholder passes
- Wisconsin proposes new PFAS drinking water standards to align with federal rules
- Construction worker dies after being found unconscious in trench box
- Washington Watch: Congress stalls on pipeline safety bill as PHMSA nears key rule decisions
- Tennessee pipeline gets initial FERC approval despite environmental concerns
Comments