WhiteWater Midstream on May 2 announced the execution of multiple transportation and interconnect agreements for its Delaware Basin Agua Blanca pipeline, which is a joint venture between WhiteWater and WPX Energy (NYSE: WPX).
In conjunction with those agreements, MarkWest Energy Partners LP, a wholly owned subsidiary of MPLX LP, and an affiliate of Targa Resources Corp. will join WhiteWater and WPX Energy as joint venture partners in the Agua Blanca pipeline. Approximately 80% of capex will be funded with project level debt.
In addition to the agreements with its new partners, WhiteWater has entered into long-term transportation service agreements with two premier Delaware Basin producers in Culberson County.
“We are extremely excited about our new strategic partners, MPLX and Targa,” Christer Rundlof, WhiteWater’s CEO, said. “Both companies are top tier processors that continue to expand services in the Permian Basin. We look forward to growing Agua Blanca and derivative projects with our strong customer base.”
Agua Blanca now has over 1.1 billion cubic feet per day (Bcf/d) of long-term firm commitments. The pipeline has also continued to expand its connectivity with agreements in place with the following processors: Brazos Midstream, Crestwood Midstream Partners, EnLink Midstream Partners and Medallion Midstream. These agreements will bring total plant processing capacity connected to Agua Blanca to nearly 2.5 Bcf/d, which is expected to increase to 5.0 Bcf/d in the near-term.
WhiteWater Midstream will own a 60% equity interest in Agua Blanca, with WPX Energy, MPLX and Targa owning an equity interest of 20%, 10% and 10%, respectively in the project.