NGL Energy Partners has entered into a definitive agreement with an affiliate of BlackRock Inc.’s Global Energy and Power Infrastructure Fund (GEPIF) in partnership with Navigator Energy Services to sell its 50 percent interest in Glass Mountain Pipeline for $300 million.
The sale is expected to close prior to December 31, 2017, subject to the receipt of certain governmental approvals and the satisfaction of other customary closing conditions.
Glass Mountain is a fully integrated, multi-play crude transportation system in Oklahoma, which services the STACK/Merge, Granite Wash and Mississippi Lime plays and delivers crude oil to one million barrels of GMP-owned storage at Cushing, Okla.
GMP completed construction of the original, approximately 215-mile system and began commercial operations in April 2014. An approximately 44-mile extension into the STACK was announced in December 2016, and is expected to be complete by calendar year-end 2017 and operational in early 2018. Once the STACK extension is completed, the system would include pipeline capacity of approximately 210,000 barrels of oil per day and approximately 1.8 million barrels of storage, including 1.0 million barrels located in Cushing, Oklahoma. The pipeline is supported by long-term agreements with producers, including both take-or-pay and area dedications.
