Noble Midstream will now be responsible for all crude oil gathering and intermediate oil transportation services from Wells Ranch
Noble Midstream Partners has signed a deal with a Chevron subsidiary to offer oil transmission services from the Wells Ranch development area to Platteville for long-haul transportation out of the Denver-Julesburg basin.
Under the terms of the deal, the company will now take over the responsible for all crude oil gathering and intermediate oil transportation services from the Wells Ranch.
Noble Midstream is a growth-oriented master limited partnership formed by Noble Energy and is majority-owned by Chevron to own, operate, develop and acquire domestic midstream infrastructure assets.
Noble Midstream executes lease for Energy Transfer’s Wattenberg Oil Trunkline
The partnership has concurrently executed a capacity lease with an Energy Transfer subsidiary for capacity on Energy Transfer’s Wattenberg Oil Trunkline (WOT).
The lease will allow Noble Midstream to use a substantial part of the WOT pipeline’s capacity through 2031.
The WOT pipeline ends at Platteville, Colorado, where the partnership has existing infrastructure and storage which are connected to four major long-haul pipelines in the DJ Basin.
Noble Midstream Partners business and corporate development vice president John Reuwer said: “This important transaction marks the first business development agreement with Chevron as well as a new commercial partnership with a key midstream provider in the DJ Basin.
“The WOT capacity lease provides both operational support and value for Chevron and the Partnership and gives Noble Midstream the ability to add incremental third-party business and further bolster our strong presence in the DJ Basin.”
In 2019, Noble Midstream Partners secured a $200m equity investment commitment from Global Infrastructure Partners Capital Solutions Fund (GIP) to fund capital needed for a 30% stake in the EPIC Crude Pipeline in Texas.