NGL Energy Partners LP is picking up natural gas liquids (NGL) assets in Louisiana and Oklahoma from the bankruptcy of Murphy Energy Corp.
The assets include the Port Hudson Terminal in Louisiana, an NGL terminal that supports refined products blending; and the Kingfisher Facility in Oklahoma, an NGL and condensate facility. The combined purchase price is about $51 million. The NGL Energy Bid was approved as the high bid by U.S. Bankruptcy Court; the transaction is expected to close in January.
The facilities include long-term, fee-based contracts and fit with NGL Energy's existing assets, the company said. "We are excited to add the Port Hudson Terminal and Kingfisher Facility to our asset base as we continue to expand our midstream presence in both the Midcontinent and Gulf Coast regions," said Todd Tanory, midstream assets senior vice president.
The Kingfisher Facility connects to the Chisholm NGL Pipeline and the Conway Fractionation complex. The facility has multiple truck unloading stations, 450,000 gallons of storage capacity, a methanol extraction tower and a 5,000 b/d condensate splitter.
"Located in the middle of the STACK [Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties] shale play, this asset is expected to directly benefit from increased drilling activity in the STACK and SCOOP [South Central Oklahoma Oil Province] plays of central Oklahoma," NGL Energy said. "The facility is supplied by production from regional gas processing plants and producers. Crude oil from this facility is also expected to be delivered to Cushing via the newly announced Glass Mountain Pipeline extension into the STACK play. NGL Energy Partners LP is a 50% owner in Glass Mountain Pipeline."
The Port Hudson Terminal is near Baton Rouge as well as other refined products infrastructure along the Colonial Pipeline. The truck unloading and storage facility allows for the aggregation and supply of butane and naphtha for motor fuel blending. The terminal consists of four truck unloading bays and eight pressurized storage tanks with total capacity of 720,000 gallons.