A brand new pipeline connecting to the Cheniere Corpus Christi Liquefaction facility has entered business service.
The ADCC Pipeline is a brand new three way partnership between Whistler Pipeline, LLC and Cheniere Power, Inc. The ADCC pipeline is an roughly 43-mile, 42-inch intrastate pipeline designed to move as much as 1.7 billion cubic toes per day (Bcfpd), expandable to 2.5 Bcfpd of pure fuel, from the terminus of the Whistler Pipeline in Agua Dulce, Texas, to Cheniere’s Corpus Christi Liquefaction Facility.
The receipt factors in Agua Dulce present Cheniere direct entry to Permian and Eagle Ford volumes along with volumes sourced alongside the Gulf Coast, Whistler Pipeline operator Whitewater stated in a information launch.
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The ADCC Pipeline additional enhances the pure fuel infrastructure in Texas and creates a further demand level for Permian fuel. The infrastructure is predicted to assist cut back flared volumes within the Permian Basin and additional help U.S. liquefied pure fuel (LNG) exports to world markets, in response to the discharge.
The ADCC Pipeline is a three way partnership owned 70 % by Whistler Pipeline LLC, which is a three way partnership between WhiteWater (50.6 %), MPLX LP (30.4 %), and Enbridge (19.0 %) (NYSE: ENB). The remaining 30 % curiosity in ADCC Pipeline is held by a wholly-owned subsidiary of Cheniere Power, Inc.
The Whistler Pipeline is an roughly 450-mile, 42-inch intrastate pipeline that transports pure fuel from the Waha Header within the Permian Basin to Agua Dulce, Texas, offering direct entry to South Texas and export markets. An roughly 50-mile, 36-inch lateral offers connectivity to the Midland Basin.
In March, WhiteWater, I Squared, MPLX LP, and Enbridge entered right into a definitive settlement to strategically mix the Whistler Pipeline and Rio Bravo Pipeline initiatives in a newly shaped three way partnership.
Enbridge contributed its wholly-owned Rio Bravo Pipeline undertaking and money in change for an possession stake within the newly shaped three way partnership. Enbridge retained a 25% financial curiosity within the Rio Bravo Pipeline undertaking as a part of its funding, whereas WhiteWater continues to function the three way partnership’s property, together with the Rio Bravo Pipeline undertaking.
The mixed platform will present vital advantages to the three way partnership’s clients by connecting Permian provide to incremental LNG export markets through Rio Bravo’s connectivity with NextDecade’s Rio Grande LNG facility. Moreover, the creation of this platform is anticipated to help the event of incremental pipeline initiatives connecting Permian provide to export markets alongside the Gulf Coast, in response to an earlier information launch.
“This strategic transaction is a win for WhiteWater/I Squared and MPLX. It extends the common contract tenor, brings us nearer to an essential strategic associate in Enbridge and positions us nicely for future improvement alternatives supporting Gulf Coast LNG. WhiteWater is worked up so as to add Enbridge as a associate and NextDecade’s Rio Grande LNG as a buyer. Collectively we are going to proceed to develop our Texas pipeline community,” WhiteWater CEO Christer Rundlof stated.
WhiteWater is an Austin, Texas-based infrastructure firm, and operator of the Whistler Pipeline. WhiteWater is partnered with a number of non-public fairness funds together with however not restricted to I Squared Capital.
MPLX is a diversified, large-cap grasp restricted partnership that owns and operates midstream vitality infrastructure and logistics property and offers fuels distribution companies. MPLX’s property embody a community of crude oil and refined product pipelines; an inland marine enterprise; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and related piping; and crude and light-product marine terminals. MPLX additionally owns crude oil and pure fuel gathering methods and pipelines in addition to pure fuel and NGL processing and fractionation amenities in key U.S. provide basins.
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