Whistler Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Whistler Pipeline is a proposed natural gas pipeline in Texas.[1]

Location

The pipeline will run from the Waha Header, Coyanosa to Agua Dulce, Texas USA.[2][3]

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Project Details

  • Owner: Stonepeak Infrastructure Fund III (25.00%), MPLX LP (25.00%), WhiteWater Midstream (25.00%), West Texas Gas (25.00%)[4]
  • Capacity: 2,000 million cubic feet per day[5]
  • Length: 997.8 kilometers / 620 miles[5]
  • Diameter: 30-inches, 42-inches[5]
  • Status: Construction[4]
  • Start Year: 2021[5]
  • Financing: US$508 million in equity from Stonepeak Infrastructure Fund, MPLX LP, WhiteWater Midstream and West Texas Gas; debt – involving bond issues and loans – of US$1.754 billion from a consortium of commercial banks,[6] with Global Infrastructure Partners purchasing US$325 million of the bonds[7]

Background

The project will provide an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast.[1]

In June of 2019, MPLX LP, First Infrastructure Capital-backed WhiteWater Midstream, and a joint venture of Stonepeak Infrastructure Partners and West Texas Gas Inc. reached a final investment decision to move forward with the design and construction of the project. Natural gas will be sourced from multiple upstream connections in the Midland and Delaware basins, including direct connections to Targa plants through a 27-mile, 30-in. pipeline lateral, as well as a direct connection to the Agua Blanca Pipeline—a joint venture of WhiteWater, WPX Energy, MPLX, and Targa. Commercial contracts have already been arranged for most of the pipeline's capacity. The pipeline is expected to be in service in third-quarter 2021, pending regulatory approvals.[8]

In June 2020, financial close was reached for the project to receive US$1.754 billion in debt financing via loans and the issuing of bonds from SMBC, MUFG, Mizuho, CoBank, Société Générale, Truist Bank, Landensbank Baden-Wurttemberg, Caixa Bank and Banco Sabadell. At the same time the project promoters invested an additional US$508 million in cash equity.[6] The New York-based private equity fund Global Infrastructure Partners announced it had bought US$325 million of bonds issued by the project.[7]

As with the Permian Highway Pipeline and the Gulf Coast Express Pipeline, local landowners have been challenging pipeline construction in the courts, asserting that pipeline construction has been unjustly prioritized over private property rights.[9]

According to the U.S.'s Energy Information Agency (EIA), the pipeline has been approved by the Federal Energy Regulatory Commission (FERC).[5] In November 2020, MPLX's management indicated that the pipeline was on schedule to start up in the second half of 2021.[10]

Articles and resources

References

  1. 1.0 1.1 Planned Pipelines, Pipeline News, accessed October 2018
  2. Taylor, Bertie (18 November 2019). "Whistler Pipeline Launches Open Season in the Permian". RigZone. Retrieved 29 February 2020.
  3. National Energy and Petrochemical Map , FracTracker, February 28, 2020
  4. 4.0 4.1 Asset Data, IJGlobal, accessed Aug. 27, 2020
  5. 5.0 5.1 5.2 5.3 5.4 Natural Gas Data, Pipeline Projects Energy Information Agency, accessed July 21, 2020
  6. 6.0 6.1 "Whistler LNG Pipeline", IJGlobal, accessed Oct. 9, 2020
  7. 7.0 7.1 Adrian Hedden, "GLOBAL INFRASTRUCTURE PARTNERS ANNOUNCES INVESTMENT IN SENIOR SECURED NOTES OF WHISTLER PIPELINE LLC", Global News Wire, Jun. 25, 2020
  8. Partners reach FID on Whistler gas pipeline, Oil and Gas Journal, June 10, 2019
  9. Rachel Adams-Heard, A $2 Billion Gas Pipe Is Rare Flashpoint on Friendly Texas Turf, Bloomberg, July 17, 2019
  10. Leticia Gonzales, MPLX Expecting Slower Growth, but Permian, Marcellus Volumes Fueling Optimism, Natural Gas Intelligence, Nov. 4, 2020

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External resources

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