Apache Midstream has reached an agreement with ARM Energy affiliate Salt Creek Midstream to develop a $100m natural gas liquids (NGL) project in the US.
The deal will see ARM Energy build, manage, operate and own an interest in the 445,000 barrel per day (bpd) NGL header system, SCM Alpine. This transportation system comprises two pipeline segments that originate at both the Salt Creek and Apache processing facilities in Reeves County, Texas.
As part of the agreement, Apache has secured an option to acquire a 50% stake in Alpine.
ARM Energy CEO Zach Lee said: “This announcement signifies Salt Creek’s extensive relationships in the Delaware Basin and our expanding world-class asset-base.
“We believe Alpine is well-positioned to provide market optionality leading to netback advantages for its customer base.”
The project is set to become operational in Q1 2019 and has secured ten-year commitments from both Salt Creek and Apache, with an option to extend the term for an additional ten years.
The pipeline will transport NGLs to Waha, offering interconnectivity to downstream pipelines that provide access to Mont Belvieu and Corpus Christi fractionation facilities.
Apache midstream and marketing senior vice-president Brian Freed said: “The development of this NGL project is another significant step in Apache’s Alpine High infrastructure buildout.
“This project provides Apache access to the emerging Waha market area, increasing the company’s long-term operational flexibility and market optionality.”
