Altus Acquires Stake in Shin Oak NGL Pipeline
NGLs from the Shin Oak system are sourced primarily from Enterprise’s Orla natural gas process- ing complex in Reeves County, Texas, as well as from Apache Corp.’s (Houston) Alpine High play through a long-term NGL sales agreement committing 100% of NGLs from that acreage. Supported by long-term customer commitments, the pipeline will ultimately have the capacity to transport up to 550,000 bbld by the fourth quarter of this year.
“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, CEO of Enterprise’s general partner. “In addition to providing much-needed takeaway capacity for NGLs, Shin Oak is a key asset in Enterprise’s integrated mid- stream network, which provides unparalleled access to the most attractive domestic and international markets.”
“Altus is pleased to partner with Enterprise on the Shin Oak Pipeline,” added Clay Bretches, CEO of Altus Midstream. “Shin Oak is integrated with Enterprise’s existing pipelines and gas processing plants, which provide supply from multiple basins. This integration, along with connectivity to Enterprise’s fractionation complex in Mont Belvieu, drives substantial volume through the pipeline and provides superior flow assurance for customers, which is a significant competitive advantage for attracting additional third-party business.”
Altus Midstream Co. is a pure-play, Permian- to-Gulf Coast midstream C-corporation. Through its consolidated subsidiaries, Altus owns substantially all of the gas gathering, processing, and transportation assets serving production from Apache Corp. in the Alpine High play in the Delaware Basin, owns equity interests in four Permian-to-Gulf Coast pipelines, and has the option to acquire a 50% equity interest in the Salt Creek NGL pipeline.
(SOURCE: The Weekly Propane Newsletter)
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