EnLink Midstream Partners LP, Dallas, reported entering into an agreement to acquire the Victoria Express Pipeline (VEX) and related truck terminal and storage assets from Devon Energy Corp. for a total of $210-220 million.
The transaction, which is expected to close by Apr. 1.
“These assets will give EnLink a tremendous growth platform in the Eagle Ford shale, said Barry E. Davis, EnLink president and chief executive officer.
The VEX assets include a 56-mile multigrade crude oil pipeline, as well as the pipeline’s destination facilities at the Port of Victoria, including an eight-bay truck unloading terminal, 200,000 bbl of aboveground storage, of which 50,000 bbl are under construction, and rights to barge loading docks.
Also included in the transaction are facilities near the origin of the pipeline that are currently under construction, including an eight-bay truck unloading terminal and 160,000 bbl of aboveground storage (Cuero Facilities), which are expected to be operational in this year’s second half.
The VEX system, which became operational in third-quarter 2014, currently transports condensate from DeWitt County to the Port of Victoria on Texas’ mid-coast. The pipeline’s current capacity is 50,000 b/c and, following commencement of operations of the Cuero Facilities, will operate as a batched system designed to segregate up to three different products, including processed condensate deemed eligible for export, unprocessed condensate, and crude oil.
The $30-40 million of additional capital EnLink will invest in 2015 includes the costs of construction being assumed by EnLink in the transaction to complete the Cuero Facilities and expand the pipeline capacity to about 90,000 b/d.