$3.5 Billion Pipeline Company Formed After Apache and KAAC Joint Venture

Apache Corporation and investment firm Kayne Anderson Acquisition Corp. (KAAC) will enter a joint venture to form Atlus Midstream Co., a pipeline company worth $3.5 billion, the company announced August 8.

Houston-based Apache will contribute its midstream assets at Alpine High to Atlus Midstream. KAAC will contribute $925 million in cash.

Apache will own 71.1 percent of Atlus Midstream and will be their largest customer and driver behind their growth, according to Apache's president and CEO.

The CEO said in a conference call that Alpine High is “a world-class resource play” and said “there would be a thoughtful transition” going forward regarding the joint venture.

“For Apache, this is a very strategic transaction with a world-class partner at an attractive valuation,” Apache’s CEO stated in a release. Since our discovery of Alpine High, we have invested nearly $1 billion in an extensive network of fit-for-purpose infrastructure to meet the current and future processing and transport needs of the play.”

The actual closing date for the transaction is expected to be in November 2018.

Rig Zone

Kinder Morgan to Join EagleClaw Midstream, Apache Corporation in Permian Highway Pipeline Project

Kinder Morgan Texas Pipeline LLC, EagleClaw Midstream Ventures, and Apache Corporation made an announcement yesterday that they signed a letter of intent to develop the proposed Permian Highway Pipeline Project (PHP Project).

The PHP Project will serve as an additional outlet for the increase in natural gas production that links the Permian Basin to the growing markets that stretch across the Texas Gulf Coast.

The project would transport a maximum of 2 billion ft^3/d of natural gas that crosses 430 miles of 42 inch pipeline from the Waha, Texas area to US Gulf Coast and Mexico markets.

Kinder Morgan is also looking at the feasibility of a 48-inch pipeline to increase transportation capacity. 

The project is expected to be in service in late 2020.

World Pipes


Apache Corp Signs on as Anchor Customer of 538-Mile NGL Pipeline

Apache Corp said it will be an anchor customer of Enterprise Products Partners' 658-mile natural gas liquids pipeline in Texas, which will serve as a long-term outlet for the producer's large volume of NGL it plans to produce in West Texas.

Enterprise's Shin Oak NGL pipeline will run from Reeves County, Texas to the pipeline company's storage hub east of Houston in Mont Belvieu. Pipeline construction is expected to be complete in mid 2019.

Apache Corp also signed on as a major customer of the planned EPIC Crude Oil pipeline that will run from Apache's Alpine High development to Corpus Christi.

Apache will move more than 200,000 barrels of NGLs per day on the Shin Oak, which will have a starting capacity of 550,000 barrels per day.

Fuel Fix

Apache Corp, Noble Energy to be Major Customers of 730-Mile EPIC Crude Pipeline in Permian

Apache Corp and Noble Energy have signed on as the primary customers for the 730-mile EPIC crude oil pipeline that will move from Texas' Permian Basin to Corpus Christi.

The pipeline is being built by EPIC Midstream Holdings and is expected to be one of the biggest pipelines in a group of major pipeline projects that are underway in the booming Permian to carry oil, gas, and natural gas liquids to port and refining hubs near Corpus Christi and Houston.

EPIC Midstream is also building a natural gas liquids pipelines adjacent to the crude oil project, to which BP has signed on as a major anchor customer.

Apache and Noble have agreed to use 30 percent of the pipeline's planned capacity of 590,000 barrels a day. The crude oil pipeline is expected to come online by the end of 2019.

Fuel Fix