Whistler, Rio Bravo Pipeline Project to Combine in JV
3/26 7:52 AM
Whistler, Rio Bravo Pipeline Project to Combine in JV
OAKHURST, N.J. (DTN) --- WhiteWater, I Squared, MPLX LP and Enbridge Inc.
jointly announced they have entered into a definitive agreement to
strategically combine the Whistler Pipeline and Rio Bravo Pipeline project in a
newly formed joint venture. The transaction is expected to close in the second
quarter after receipt of required regulatory approvals and satisfaction of
other customary closing conditions.
The combined platform will provide significant benefits to the joint
venture's customers by connecting Permian supply to incremental LNG export
markets via Rio Bravo's connectivity with NextDecade's Rio Grande LNG facility.
Additionally, the creation of this platform is anticipated to support the
development of incremental pipeline projects connecting Permian supply to
export markets along the Gulf Coast.
The Whistler Pipeline, operated by WhiteWater, has approximately 2.5 billion
cubic feet per day of capacity and the system is comprised of approximately 450
miles of 42-inch diameter pipeline that transports natural gas from the Permian
Basin to Agua Dulce, Texas, with direct connections to Corpus Christi and the
gulf coast. The pipeline also has an approximately 85-mile, 36-inch diameter
lateral to the Midland Basin.
Enbridge will contribute its wholly owned Rio Bravo Pipeline project and
cash in exchange for an ownership stake in the newly formed joint venture.
Following the closing of the transaction, the ownership in the joint venture
will be WhiteWater/ISquared at 50.6%, MPLX with 30.4% and Enbridge at 19%.
Enbridge will retain a 25% economic interest in the Rio Bravo Pipeline project
as part of its investment, subject to certain redemption rights of the joint
venture partners. WhiteWater will continue to operate the joint venture's
assets, including the Rio Bravo Pipeline project.
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