NGL Supply Wholesale acquires Ambassador Pipeline

NGL Supply Wholesale LLC acquired a 225-mile natural gas liquids pipeline from Lambda Energy Resources that spans from Marysville, Michigan, to Kalkaska, Michigan.

NGL says the acquisition complements its existing liquids assets in the Upper Midwest and expands its presence with anchor assets in Michigan, one of the top propane markets in the United States.

The pipeline, named the Ambassador Pipeline, will be utilized for propane service on a year-round basis.

NGL is investing in incremental infrastructure to make the pipeline safer and able to accommodate bidirectional flow. Once completed, propane may be injected and received on both the north end of the pipeline at Kalkaska and on the southern end of the line at Marysville. Concurrently with the pipeline upgrades, NGL has also begun constructing a pipeline-supplied propane terminal near Wheeler, Michigan, to be completed in the second half of this year.

As a part of the acquisition, NGL and Lambda entered into a multi-year “keep dry” agreement, under which NGL will be marketing Lambda’s propane production at Kalkaska. NGL will also deliver supplemental propane to Kalkaska to satisfy Michigan’s robust winter demand.

Through the locations at Marysville, Wheeler and Kalkaska, NGL says it provides a unique offering to its customers with stability and flexibility of supply. The locations are linked by the Ambassador Pipeline, which is backed by a large storage position at Marysville and propane production at Kalkaska along with rail receipts when necessary.

NGL Supply Wholesale is part of the liquids segment of NGL Energy Partners, based in Tulsa, Oklahoma.

Featured image: tttuna/E+/Getty Images