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NGL Energy Moves Into Bakken With New Wastewater Assets

Expanding its scope with a series of acquisitions in the past two years, Tulsa-based NGL Energy Partners LP has acquired two salt water disposal facilities from different companies for $34.6 million that will give the company entry into the Bakken Shale.

The transactions will require new permitting from the North Dakota Department of Mineral Resources (DMR), a Bismarck, ND-based spokesperson for the department told NGI's Shale Daily.

Known for its propane retailing prior to a $693 million merger in 2012 with two High Sierra Group (HSE) business units (see Shale Daily, May 23, 2012), NGL Energy acquired Water Works Corral Creek LLC facilities in the Bakken and Saltwater Disposal Systems LLC. HSE is in the business of treating, disposing and recycling water used in hydraulic fracturing (fracking) along with moving natural gas liquids (NGL).

The Water Works acquisition, which includes offering jobs to 13 employees. A spokesperson said the firm has "high-quality, high-volume facilities located in McKenzie and Dunn counties." With the acquisitions, the NGL Energy water treating capacity nationally would be about 800,000 barrels per day.

North Dakota currently has more than 400 wastewater treatment facilities with 131 separate operators, some of which are oil and gas producers that operate their own facilities, and the rest are commercial firms.

Subsidiary NGL Water Solutions has been evaluating opportunities to get into the Bakken for some time, according to NGL Energy President Jim Burke, the former CEO of HSE.

"We look forward to establishing NGL Water Solutions in the Bakken as well as identifying opportunities to expand our footprint and apply our extensive technical expertise in water treatment,” he sasid.

NGL Energy was formed in 2010 through the merger of Hicksgas and NGL Supply. Its principal business units consist of the propane business, transportation/marketing NGLs and crude oil, and transportation, treatment, disposal and recycling of fracturing water.

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