JP Energy Buys Midstream Assets
Bought crude gathering and storage assets in the Midcontinent for an undisclosed sum.
JP Energy Partners has purchased Parnon Storage LLC and Parnon Gathering LLC for an undisclosed sum.
The seller, price and closing date were not disclosed. Parnon Storage owns three million barrels of crude oil storage the Cushing terminal, consisting of five storage tanks each capable of holding 600,000 barrels of crude oil. Subsequent to the acquisition of these storage tanks, JP Energy entered into a long term lease agreement with Parnon Energy, Inc.
Parnon Gathering is a crude oil midstream company that purchases, gathers, transports and markets crude oil for producers and refiners in the Midcontinent, and the company currently moves approximately 14,000 barrels a day of crude oil. Parnon Gathering owns 40 crude oil transports, 13 truck injection stations and approximately 215 miles of crude oil pipelines.
The company’s pipelines include the new eight inch Great Salt Plains Pipeline originating in Cherokee, Oklahoma and terminating in Cushing, Oklahoma, and approximately 100 miles of crude oil gathering pipelines running from North Texas to South Oklahoma. The Great Salt Plains Pipeline begins service in September of this year with an operating capacity of 35,000 barrels per day, and the pipeline will be expanded as crude oil volumes continue to increase in the region.
J. Patrick Barley, President and Chief Executive Officer of JP Energy, stated, “The acquisition of Parnon Storage and Parnon Gathering provide JP Energy a larger, more competitive midstream platform in the Midcontinent. We are excited to acquire the Great Salt Plains Pipeline, which will begin service in September and provide much needed take away capacity for the growing volumes in the Mississippi Lime.”
Barley went on to say “the Parnon assets compliment the transportation assets we acquired with the Falco Energy transaction, and collectively, JP Energy now provides crude oil midstream services in the Bakken, Eagleford Shale and the Mississippi Lime, which are three of the fastest growing crude oil plays in the country.”
JP Energy Partners was formed in 2010 to focus on developing a platform of midstream assets to provide refinery services. JP Energy currently owns these assets through its subsidiaries Pinnacle Propane, JP Crude Oil Services and JP Refined Products.