Final dropdown of Devon’s legacy assets, given in 2014, was made for about $900 million of newly issued ENLK units. Assets include North Texas and Oklahoma gathering and processing systems.
An 80-mile crude transportation line from the Midland Basin gathering system to Colorado City, Texas, is also on the table.
Construction of the first segment of the Nesson system began in July 2014. Nesson serves XTO Energy Inc. and has a maximum throughput of 1,800 barrels per day.
Gas will be transported from the Moraine East area in Butler County, Penn., and delivered to the Bluestone processing plant owned and operated by a MarkWest Energy Partners LP subsidiary.
The commissioning process involves operational and functional unit testing, initial startup and performance testing. Mechanical, instrument and electrical pre-commissioning work is complete. The initial startup began May 22.
Construction will begin in June. The Pecos County, Texas, site is near Waha Hub and Lone Star NGL pipeline. The plant and gathering system will be completed over next year.
Proposed IRS rules defining qualifying income for MLPs give needed guidance, but could be a setback for olefin-producing companies.
The dropdown assets are Holdings’ Valley Wells sour gas gathering and treating system, compression assets in the Valley Wells and Lancaster gathering and treating systems and two NGL pipelines.
After lifting a year-long “pause” in March on private rulings over qualifying income for MLPs, on May 6 the Internal Revenue Service released proposed rules clarifying what sorts of activity would produce qualifying income.
Phillips 66 Co. might play up its role in midstream and chemicals, but its downstream presence will remain strong, Greg Garland, chairman and CEO, said in recent annual shareholders' meeting.
Enable Midstream Partners LP completed the $80 million acquisition of natural gas gathering assets in Texas Panhandle from Monarch Natural Gas LLC. The assets are supported by 35,000 net acres.
Enterprise Products Partners LP entered into an agreement with an Occidental Petroleum Corp. affiliate to jointly develop a new 150 million cubic feet per day cryogenic natural gas processing plant.