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. (c) Copyright 2024 DTN, LLC. All rights reserved.
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN