Altus Midstream acquired 33% equity interest in the 658-mile Shin Oak natural gas liquids pipeline owned by Enterprise Products Partners L.P. Both companies announced the closing yesterday.
The pipeline transports growing NGL production from multiple basins, including the Permian and will ultimately have capacity to transport up to 550000 barrels per day of NGLs by the fourth quarter of 2019.
“We are very pleased to have Altus as a partner in the Shin Oak Pipeline, which facilitates continued growth of Permian Basin NGLs that are expected to more than double by 2025,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner.
“Altus is pleased to partner with Enterprise on the Shin Oak Pipeline,” said Clay Bretches, CEO of Altus Midstream.
With a long-term NGL sales agreement committing 100% of NGLs for Shin Oak system’s, the natural gas liquids are sourced primarily from Enterprise’s Orla natural gas processing complex in Reeves County, Texas, as well as Apache Corporation’s Alpine High play.