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The homeowners of the Whistler Pipeline system and the builders of the deliberate Rio Bravo Pipeline undertaking are becoming a member of forces to attach Permian Basin pure fuel provide with Gulf Coast LNG export markets.
WhiteWater Midstream, I Squared Capital, MPLX LP and Enbridge Inc. have agreed to mix Whistler and Rio Bravo in a brand new three way partnership (JV), the companies introduced Tuesday.
Below the deal, anticipated to shut throughout the second quarter of 2024, Enbridge would contribute its wholly owned Rio Bravo undertaking and money in trade for an possession stake within the new JV. Possession of the brand new enterprise would comprise WhiteWater/I Squared (50.6%), MPLX (30.4%) and Enbridge (19.0%).
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The roughly 450-mile, 42-inch diameter Whistler Pipeline has capability to maneuver 2.5 Bcf/d of Permian fuel to the Agua Dulce hub in South Texas, with direct connections to Corpus Christi and the Gulf Coast. The pipeline additionally has an 85-mile, 36-inch diameter lateral to the Permian’s Midland sub-basin.
The Rio Bravo pipeline, in the meantime, is supposed to produce feed fuel to NextDecade Corp.’s Rio Grande LNG export terminal below development in Brownsville, TX. Enbridge is aiming to start development of Rio Bravo in 2025, with a focused in-service date within the second half of 2026.
“The mixed platform will present important advantages to the three way partnership’s prospects by connecting Permian provide to incremental LNG export markets by way of Rio Bravo’s connectivity with NextDecade’s Rio Grande LNG facility,” the companies stated. “Moreover, the creation of this platform is anticipated to assist the event of incremental pipeline initiatives connecting Permian provide to export markets alongside the Gulf Coast.”
Enbridge additionally would retain a 25% financial curiosity in Rio Bravo, whereas WhiteWater would proceed to function the JV’s property together with Rio Bravo.
“This strategic transaction is a win for WhiteWater/I Squared and MPLX,” stated WhiteWater CEO Christer Rundlof. “It extends the typical contract tenor, brings us nearer to an vital strategic associate in Enbridge and positions us nicely for future improvement alternatives supporting Gulf Coast LNG.”
Rundlof added, “WhiteWater is worked up so as to add Enbridge as a associate and NextDecade’s Rio Grande LNG as a buyer. Collectively we are going to proceed to develop our Texas pipeline community.”
MPLX’s Dave Heppner, senior vice chairman, stated, “This transaction is a continuation of MPLX’s wellhead-to-water progress technique, enhancing our pure fuel worth chain within the Permian Basin and South Texas. The strategic mixture of those property place the Whistler Pipeline system for future capability expansions to satisfy growing demand for pure fuel provide to Gulf Coast LNG amenities.”
South Texas is a focus for U.S. liquefied pure fuel exports, in addition to pipeline exports to Mexico.
“Buying a significant fairness curiosity in an built-in pure fuel pipeline and storage community that’s straight linked to our current infrastructure supplies prospects, like NextDecade, with helpful final mile connectivity and unlocks future progress alternatives,” stated Enbridge’s Cynthia Hansen, president of fuel transmission and midstream.
NextDecade CEO Matt Schatzman weighed in as nicely, saying, “The mix of Whistler Pipeline and Rio Bravo Pipeline property confirms the significance of our Rio Grande LNG undertaking as a significant marketplace for related fuel from the Permian Basin.
The put up Whistler, Rio Bravo Pipeline Homeowners Teaming As much as Advance Permian-to-Gulf Coast LNG Hall appeared first on Pure Fuel Intelligence
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