Houston-based Plains All American Pipeline and Noble Energy’s midstream business are teaming up to buy a Permian Basin pipeline system for $133 million.
Plains and Noble Midstream Partners will acquire the assets of Midland-based Advantage Pipeline, which includes a 70-mile oil pipeline system in the southern Delaware Basin portion of the Permian.
The 50-50 joint venture will take over the system that runs from Reeves County to Crane County and includes crude storage at three separate stations along the route.
Noble will serve as the lead operator of the project. Both Plains and Noble will build separate pipelines connecting the Advantage system to their existing Permian networks. Noble Energy plans to use the pipeline in part for its own crude production.
Plains has been particularly active in the Permian of late. In January, Plains said it would buy the new Alpha Crude Connector pipeline gathering and storage system for $1.2 billion from Midland-based Concho Resources and Dallas private-equity firm Energy Spectrum Capital. Plains also said it will expand its existing BridgeTex and Cactus pipeline systems in West Texas.