Noble Midstream Partners LP and Plains All American Pipeline LP have completed the $133 million 50/50 joint venture acquisition of Advantage Pipeline LLC.
Noble Midstream will serve as operator of the Advantage system, which includes a 70-mile crude oil pipeline in the southern Delaware Basin that runs from Reeves County, Texas, to Crane County, Texas; has 150,000 barrels of daily shipping capacity that can be expanded to over 200,000 bbl/d; and 490,000 barrels of storage capacity, according to an April 3 news release.
Throughput growth is expected from an acreage dedication by Noble Energy Inc. and a volume commitment from Plains Marketing LP. Connections to the Advantage pipeline from Noble Midstream's first central gathering facility and Plain's Wolfbone Ranch Station is set to be completed in the second quarter of 2017.
Noble Midstream contributed $66.5 million of cash, while Plains contributed around 1.3 million of its units and $26.3 million of cash.