KILGORE, Texas, Oct. 23, 2017 (GLOBE NEWSWIRE) — Martin Midstream Partners L.P. (NASDAQ:MMLP) announced today that the West Texas LPG Pipeline Limited Partnership joint venture (of which MMLP owns a 20% interest with ONEOK, Inc. owning and operating the other 80% interest) plans to invest approximately $200 million to expand its natural gas liquids (NGL) system into the prolific Delaware Basin, part of the larger Permian Basin, in service by the third quarter 2018. This project is supported by dedicated NGL production from two third-party planned natural gas processing plants in northern Reeves County, one of the most active areas in the Delaware Basin. The expansion will be supported by long-term volume dedications estimated to be up to 40,000 barrels per day.
The Delaware Basin extension includes:
- The construction of an approximately 120-mile, 16-inch pipeline lateral that will have an initial capacity of 110,000 bpd; and
- The construction of two new pump stations and pipeline looping along the existing West Texas LPG system that will increase its capacity to handle the dedicated volume.
“When entering into the joint venture with Oneok in 2014, significant NGL volume growth was at the forefront of our investment thesis. The extension of the West Texas LPG Pipeline into the core of the Delaware Basin ideally positions us for this growth,” said Ruben S. Martin III, MMLP President and Chief Executive Officer.
West Texas LPG Pipeline is an interstate NGL pipeline system that consists of approximately 2,600 miles of NGL pipeline in Texas and New Mexico. The system provides transportation services to the Mont Belvieu market center from nearly 40 third-party natural gas processing plants located in the Permian Basin. The Permian Basin in southeastern New Mexico and western Texas is the largest crude oil and natural gas producing basin in the U.S.
Forward Looking Statements
Statements in this press release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Partnership’s control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The Partnership disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
About Martin Midstream Partners L.P. (NASDAQ:MMLP)
Martin Midstream Partners L.P. is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership’s primary business segments include: (1) terminalling, storage and packaging services for petroleum products and by-products; (2) natural gas services, including liquids transport and distribution services and natural gas storage; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marine transportation services for petroleum products and by-products.