Altus Midstream Acquires Stake in Enterprise’s Shin Oak Pipeline

Altus Midstream has acquired a 33% interest in the Enterprise’s Shin Oak NGL pipeline, effective today.

The 658-mile Shin Oak Pipeline transports growing NGL production from multiple basins, including the Permian, to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. 

NGLs for the Shin Oak system are sourced primarily from Enterprise’s Orla natural gas processing complex in Reeves County, Texas, as well as Apache Corporation’s Alpine High play, via a long-term NGL sales agreement committing 100 percent of NGLs from that acreage. Supported by long-term customer commitments, the pipeline will ultimately have capacity to transport up to 550,000 bpd of NGLs by the fourth quarter of 2019.

“We are very pleased to have Altus as a partner in the Shin Oak Pipeline, which facilitates continued growth of Permian Basin NGLs that are expected to more than double by 2025,” said A.J. “Jim” Teague, chief executive officer of Enterprise’s general partner. “In addition to providing much-needed takeaway capacity for NGLs, Shin Oak is a key asset in Enterprise’s integrated midstream network.”

“Altus is pleased to partner with Enterprise on the Shin Oak Pipeline,” said Clay Bretches, CEO of Altus Midstream. “Shin Oak is integrated with Enterprise’s existing pipelines and gas processing plants, which provide supply from multiple basins. This integration, along with connectivity to Enterprise’s fractionation complex in Mont Belvieu, drives substantial volume through the pipeline and provides superior flow assurance for customers.”

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