Inergy Midstream LP and Enserco Midstream LLC have formed a joint venture to own and operate a crude oil rail terminal in Douglas County, WY. They expect to expand the facility to take advantage of growing production from the Niobrara formation.
Inergy Crude Logistics LLC and Enserco Powder River Basin LLC each own an approximate 50% interest in Powder River Basin Industrial Complex LLC (PRBIC), the owner of the Douglas Facility. The Douglas Facility was placed into manifest service (multiple rail car types) in August, and unit train service (single rail car type) is expected to begin during the first quarter.
The Douglas Facility is in Converse County, WY, atop the emerging Niobrara formation in the Powder River Basin. After commencement of unit train service, Inergy Midstream and Enserco Midstream expect to expand throughput capacity to 20,000 b/d. The terminal’s throughput is further expandable to up to 60,000 b/d, the companies said. PRBIC has an anchor agreement with “a major producer” at Douglas.
“This transaction further expands Inergy Midstream’s crude logistics operations into another high-quality, emerging shale play and is an example of the strategic value of the planned merger between Inergy Midstream and Crestwood Midstream Partners LP [see Shale Daily, May 7],” said Robert Phillips, CEO of Inergy Midstream’s general partner. “The crude logistics operations of PRBIC are complementary to Crestwood’s recently completed acquisition of a 50% interest in the Jackalope natural gas gathering system [see Shale Daily, June 25] and enhance our position in the Powder River Basin play…”
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