MOSCOW (MRC) -- Midstream oil and gas company Enterprise Products Partners (EPD), through its affiliate, has agreed to acquire Navitas Midstream Partners in a debt-free transaction for USD3.25bn in cash, according to Offshore Technology.
The company will acquire Navitas from an affiliate of Warburg Pincus.
Navitas provides natural gas gathering, treating, and processing services in the Midland Basin, located in the Permian Basin. It owns 1,750 miles (2,816km) of pipelines, as well as the Leiker processing plant, which is due to be commissioned in the first quarter of 2022.
Once the Leiker plant comes on stream, Navitas will have a processing capacity of more than one billion cubic feet of cryogenic natural gas per day.
Enterprise’s general partner co-chief executive officer and chief financial officer Randy Fowler said: “The system, including its large footprint of low-pressure natural gas gathering, is an attractive processing franchise that provides value-added services to producers.
“This investment will provide Enterprise with an attractive return on capital, and support additional capital returns to our limited partners through distribution growth and buybacks of common units.”
As MRC reported before, earlier this year, Enterprise Products Partners reported flaring at its propane dehydration, or PDH, unit in Mont Belvieu, Texas. According to the filing made public Aug. 10, the 750,000 mt/year PDH unit was shut down following a leak on Aug. 9. Sources confirmed on Aug. 10 that the unit was offline, but did not give an estimated timeframe of when the unit is expected to come back online.
Propylene is the main feedstock for the production of polypropylene (PP).
According to MRC's ScanPlast report, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.