WTG acquisition strengthens Energy Transfer’s Permian presence

Energy Transfer’s $3.25 billion acquisition of WTG Midstream gives it control of a major midstream player headquartered in Midland, Texas, with operations primarily located in the Midland Basin of the prolific Permian Basin.

The addition of WTG assets is expected to provide Energy Transfer with increased access to growing supplies of natural gas and natural gas liquid (NGL) volumes, enhancing the partnership’s Permian operations and downstream businesses.

WTG provides comprehensive midstream services, including wellhead gathering, intra-basin transportation and processing services. The company’s 6,000-mile pipeline network serves significant operators in some of the most active areas of the Midland Basin. WTG also operates eight processing plants with a total capacity of about 1.3 billion cu. ft. per day (Bcf/d) and is constructing two new plants with an additional capacity of about 0.4 Bcf/d.

The acquisition also includes a 20 percent interest in the BANGL Pipeline, a 425-mile NGL pipeline with an initial capacity of 125,000 barrels per day (bpd), expandable up over 300,000 bpd, connecting the Permian Basin to markets on the Texas Gulf Coast.

Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, NGL and refined product transportation and terminalling assets; and NGL fractionation. It owns and operates one of the largest and most diversified portfolios of energy assets in the U.S., with more than 125,000 miles of pipeline and associated energy infrastructure. Its strategic network spans 44 states with assets in all of the major U.S. production basins.

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