MPLX LP announced a number of steps it has taken to further expand its growing presence in the Permian basin, positioning the partnership to evolve its business model to include participation in a number of long-haul oil and gas pipelines.
Through its subsidiary, MarkWest Energy Partners, L.P., MPLX recently completed definitive agreements with Kaiser Francis Oil Company (KFOC) to provide gathering and processing services in the Delaware Basin oil and gas producing region, which is part of the Permian Basin. Under the terms of the agreements, with Kaiser Francis as an anchor, MarkWest will develop a 200 million cubic foot per day (cfd) gas processing plant located in Loving County, Texas, called the Torñado plant, and natural gas gathering infrastructure primarily in Lea County, New Mexico. The gas gathering infrastructure and gas processing plant being developed under this agreement are expected to be complete in August 2019. MarkWest also owns and operates two gas processing plants in Culberson County, Texas, which – along with others under development – are planned to be connected via a high pressure gathering system to the Torñado Plant.
Secondly, MPLX acquired a 10 percent equity interest in the Agua Blanca Pipeline originating in Orla, Texas, and terminating at Waha, Texas, which was placed in service in April 2018. Agua Blanca is fully subscribed at 1.4 billion cfd and can be expanded to 2 billion cfd. Agua Blanca is constructing a lateral to connect the MarkWest Argo Plant, which commenced operations in early 2018.
“We are pleased to support Kaiser Francis as they develop their proven acreage and anchor the Torñado plant in the Delaware basin,” said Mike Hennigan, president of MPLX. “The commissioning of the Agua Blanca Pipeline and construction of the Torñado midstream facilities with the related gathering and processing system further advance our objective of providing fully integrated gathering, processing and gas transportation services for our producer customers in this prolific producing region.”