Plains All American Pipeline and Noble Midstream Partners are forming a 50/50 joint venture to acquire Advantage Pipeline, LLC, which owns a 70 mile, 16 ins crude oil pipeline located in the southern Delaware Basin.
The JV will acquire Advantage for $133 million. The majority of PAA’s 50 percent share is expected to be paid in PAA units issued to certain of the sellers at closing.
The Advantage Pipeline has a capacity of 150,000 bpd 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,” said Greg Armstrong, chairman and CEO of Plains All American. “The Advantage Pipeline provides area producers with more efficient access to multiple markets through interconnections with PAA’s Permian Basin system.”