Advantage Pipeline owns and operates a 70-mile, 16-inch crude oil pipeline located in the southern Delaware Basin.

The Advantage Pipeline is designed to transport 150,000 barrels per day of oil from eastern Reeves County, Texas running through Pecos and Ward Counties, to Crane County, Texas.

Additionally, the pipeline comprises approximately 490,000 barrels of combined crude storage at three separate trucking stations.

The acquisition is expected to expand the joint venture’s Permian Basin footprint in strategic Southern Delaware Basin.

Plains All American chairman and CEO Greg Armstrong said: “The Advantage Pipeline provides area producers with more efficient access to multiple markets through interconnections with PAA’s Permian Basin system.”

Noble Midstream will construct a 15-mile pipeline to deliver crude oil to the Advantage Pipeline from its first central gathering facility. It will serve as the operator of the new pipeline.

A separate pipeline project is also planned to be constructed by PAA to connect its Wolfbone Ranch facility to the Advantage Pipeline.

Noble Midstream CEO Terry Gerhart said: “We are excited to expand our Delaware Basin footprint further downstream and establish a partnership with Plains.

“Advantage has created a leading crude transmission pipeline and storage system in the Southern Delaware Basin. With this transaction we are able to provide our sponsor and third party producers connections to multiple market centers and Plains’ premier pipeline network.”

Scheduled to be completed in the first quarter 2017, the deal is subject to customary closing conditions, including the receipt of regulatory approvals.