NGL Energy Partners to acquire assets from Murphy Energy

December 20, 2016 By    

NGL Energy Partners LP will acquire several assets from Murphy Energy Corp., including a natural gas liquids (NGL) terminal and an NGL and condensate facility, for a combined purchase price of $51 million, the company announced. The deal is expected to close in January.

“These assets and their fee-based revenue streams complement our existing businesses and provide opportunities to optimize our existing operations across multiple commodities,” says Jay Furman, senior vice president of NGL commercial development at NGL Energy Partners.

The company acquired Murphy Energy’s Port Hudson, Louisiana, NGL terminal, which supports refined products blending. The terminal is located near Baton Rouge, Louisiana, and close to other refined products infrastructure along the Colonial pipeline, NGL Energy Partners says. The terminal consists of four truck-unloading bays and eight pressurized storage tanks with a total capacity of 720,000 gallons. The truck unloading and storage facility also allow for the supply of butane and naphtha for motor fuel blending.

Additionally, the company acquired Murphy Energy’s Kingfisher, Oklahoma, NGL and condensate facility. The facility connects to the Chisholm NGL pipeline and the Conway fractionation complex, the company says. It features multiple truck-unloading stations, 450,000 gallons of storage capacity, a methanol extraction tower and a 5,000-barrel-per-day condensate splitter.

Located in the middle of the STACK shale play, the facility is expected to benefit from increased drilling activity in the STACK and SCOOP plays of central Oklahoma, NGL Energy Partners adds. It is supplied by production from regional gas processing plants and producers. Crude oil from the facility will likely be delivered to Cushing via the proposed Glass Mountain pipeline extension into the STACK play, according to the company, and NGL Energy Partners is a 50 percent owner of the Glass Mountain pipeline.

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