Noble Midstream Partners LP owns, operates, develops, and acquires various domestic midstream infrastructure assets. Noble Midstream GP LLC operates as the general partner of the company. The company is a subsidiary of Noble Energy, Inc. (Noble).
The company provides crude oil, natural gas, and water-related midstream services through long-term, fixed-fee contracts, as well as purchase crude oil from producers and sell crude oil to customers at various delivery points.
The company’s areas of f...
Noble Midstream Partners LP owns, operates, develops, and acquires various domestic midstream infrastructure assets. Noble Midstream GP LLC operates as the general partner of the company. The company is a subsidiary of Noble Energy, Inc. (Noble).
The company provides crude oil, natural gas, and water-related midstream services through long-term, fixed-fee contracts, as well as purchase crude oil from producers and sell crude oil to customers at various delivery points.
The company’s areas of focus are in the Denver-Julesburg Basin in Colorado (DJ Basin) and the Southern Delaware Basin position of the Permian Basin (Delaware Basin) in Texas. The company has acreage dedications spanning approximately 545,000 acres in the DJ Basin (with approximately 230,000 dedicated acres from Noble and the remaining dedicated acres from various third parties) and approximately 118,000 acres in the Delaware Basin (with 92,000 dedicated acres from Noble and the remaining from various third parties). In addition to its existing operations and acreage dedications, Noble has granted the company rights of first refusal (ROFRs) on certain onshore United States acreage that may be acquired in the future.
Segments
The company operates through Gathering Systems, Fresh Water Delivery, and Investments in Midstream Entities segments.
Gathering Systems segment
This segment primarily includes crude oil gathering, natural gas gathering and processing, produced water gathering and crude oil sales.
Crude Oil Gathering
Delaware Basin
The company’s crude oil gathering system in the Wells Ranch Integrated development plan (IDP) area consists of shared crude oil and produced water gathering pipelines, as well as the Wells Ranch Central gathering facility (CGF) that has total crude oil throughput capacity of 50 thousand barrels per day (MBbl/d) and storage capacity of 96,000 barrels (Bbls). At the Wells Ranch CGF it is able to recover gas vapors from crude oil and delivers this natural gas for delivery to downstream third parties. In January 2021, the company began to provide crude oil transmission services from the Wells Ranch IDP area to Platteville, Colorado, through its capacity arrangement on the Wattenberg Oil Trunkline (WOT). This new arrangement will provide for long-haul transportation out of the DJ Basin.
In the East Pony IDP, the company gathers crude oil meeting pipeline specifications and deliver it directly into the northern extension of WOT and the Northeast Colorado Lateral of the Pony Express Pipeline. Its gathering system in the East Pony IDP area has total crude oil throughput capacity of 85 MBbl/d. Crude oil gathering of production from the East Pony IDP area is subject to the Federal Energy Regulatory Commission (FERC) jurisdiction. To service the Greeley Crescent IDP, the company gathers crude oil meeting pipeline specifications and deliver it into the Black Diamond Milton Terminal. The company’s gathering system in the Mustang IDP area has total crude oil throughput capacity of 60 MBbl/d. To service the Black Diamond dedication area, it gathers crude oil meeting pipeline specifications and deliver it to various delivery points. The gathering system in the Black Diamond dedication area has total crude oil throughput capacity of approximately 330 MBbl/d. The Black Diamond system provides access to long-haul crude oil outlets, including Grand Mesa Pipeline, Saddlehorn Pipeline, White Cliffs Pipeline and Pony Express Pipeline.
Delaware Basin
The company’s crude oil gathering systems in the Delaware Basin consist of pipelines that gather off-spec crude oil from well pad facilities, which is delivered to various CGFs. It has five operational CGFs in the Delaware Basin that have total crude oil throughput capacity of 96MBbl/d. The CGFs stabilize the crude oil to meet pipeline specifications and deliver to downstream pipelines leaving the Delaware Basin. Additionally, the company has a crude oil gathering system that has total crude oil throughput capacity of 12 MBbl/d. The system services production from certain acreage in the Delaware Basin. This crude oil gathering system gathers crude oil meeting pipeline specifications from well pad facilities and terminates at various third-party pipeline connection points.
Natural Gas Gathering
DJ Basin
The company’s natural gas infrastructure assets in the Wells Ranch IDP area consist of the Wells Ranch CGF and a natural gas pipeline system that collects natural gas from separator facilities located at or near the wellhead and delivers the natural gas to the Wells Ranch CGF or other delivery points within the Wells Ranch IDP area. The Wells Ranch CGF has total natural gas throughput capacity of 175 MMcf/d. It delivers the natural gas for further processing by third parties. The company’s Wells Ranch CGF also provides condensate separation and flash gas recovery. Condensate recovered from the natural gas that is gathered to the Wells Ranch CGF is stored on location and gas that is flashed from the crude oil is recovered, compressed and redelivered to downstream third parties with the gathered natural gas volumes.
The company’s natural gas infrastructure in the Mustang IDP area consists of a natural gas pipeline system that has total throughput capacity of 250 MMcf/d. The system collects natural gas from separator facilities located at or near the wellhead and delivers the natural gas to delivery points within the Mustang IDP area. The natural gas is then processed by third parties. Its natural gas infrastructure in the East Pony IDP area consists of a natural gas pipeline system that collects natural gas from the wellhead and delivers it to the company’s Lilli and Keota gas processing plants or other third-party processing facilities.
Delaware Basin
The company’s natural gas infrastructure assets in the Delaware Basin consist of five CGFs, as well as a natural gas pipeline system servicing production from the Delaware Basin. This natural gas gathering system collects natural gas from the wellhead from a high pressure separator and sends it to various CGFs. The CGFs dehydrate the natural gas, compress it, and send it downstream for processing. The company’s CGFs have total natural gas throughput capacity of 184 MMcf/d. Additionally, it has a natural gas pipeline system with a total natural gas throughput capacity of 23 MMcf/d that services production from certain acreage in the Delaware Basin. The system collects natural gas from the wellhead and terminates at various third-party pipeline connection points.
Natural Gas Processing
All of the company’s natural gas processing infrastructure resides in the East Pony IDP area of the DJ Basin. Its infrastructure includes the Lilli and Keota gas processing plants connected to the company’s gas gathering pipelines. The Lilli natural gas processing plant has an 18 MMcf/d capacity with a cryo unit and gas fired compression. The Keota natural gas processing plant has a 30 MMcf/d capacity, expandable to 45 MMcf/d, with a cryo unit, truck load-out for drip condensate and electricity-driven compression. The processing plants compress the natural gas, remove contaminants and separate the natural gas into individual natural gas liquids (NGL) components. The natural gas and NGL components are then transferred to third-party pipelines.
Produced Water Gathering
DJ Basin
The company’s produced water gathering system in the Wells Ranch IDP gathers and processes liquids produced from operations and consists of a combination of separation and storage facilities, permanent pipelines, as well as pumps to transport produced water to disposal facilities. The company operates a gathering pipeline system (which is a shared crude oil and produced water gathering pipeline) servicing the Wells Ranch IDP. At the Wells Ranch CGF, the incoming crude oil and produced water liquid stream is separated, stored, and treated before the produced water is delivered to a third-party pipeline for disposal.
The company’s produced water gathering system in the Mustang IDP gathers liquids produced from operations and consists of a combination of pumps and permanent pipelines to transport produced water to third-party disposal facilities. Its gathering system in the Mustang IDP area has total produced water throughput capacity of 30 MBbl/d. The company’s produced water gathering system in the Greeley Crescent IDP gathers liquids produced from operations and consists of a combination of pumps and permanent pipelines to transport produced water to third-party disposal facilities. The company’s gathering system in the Greeley Crescent IDP area has total produced water throughput capacity of 20 MBbl/d.
Delaware Basin
The company’s produced water gathering system in the Delaware Basin gathers and processes liquids produced from operations and consists of stabilization facilities and permanent pipelines, as well as pumps to transport produced water to third-party disposal facilities. At its CGFs, the incoming produced water is skimmed and pumped downstream to disposal wells. The company’s CGFs have total throughput capacity of 240 MBbl/d. Additionally, it has a produced water gathering system servicing production from certain acreage in the Delaware Basin. This system has total throughput capacity of 20 MBbl/d and transports produced water to third-party disposal locations.
Fresh Water Delivery segment
The company’s fresh water services are in the DJ Basin and include distribution and storage services that are integral to its customers’ drilling and completion operations. The company’s fresh water systems includes a fresh water distribution system comprised of buried pipelines in the East Pony IDP, Wells Ranch IDP, Mustang IDP, and Greeley Crescent IDP areas. In addition, the company’s fresh water systems include fresh water storage facilities in the Wells Ranch IDP, East Pony IDP, and Mustang IDP areas, as well as temporary pipelines and pumping stations to transport fresh water throughout the pipeline networks. These systems are designed to deliver water on demand to hydraulic fracturing operations. The fresh water systems provide storage capacity that segregate raw fresh water from produced water that has been treated.
Investments in Midstream Entities segment
This segment includes the company’s investments in White Cliffs Pipeline L.L.C. (White Cliffs); Advantage Pipeline, L.L.C. (Advantage); Delaware Crossing LLC (Delaware Crossing); EPIC Crude Holdings, LP (EPIC Crude); EPIC Y-Grade, LP (EPIC Y-Grade); EPIC Propane Pipeline Holdings, LP (EPIC Propane); and Saddlehorn Pipeline Company, LLC (Saddlehorn).
White Cliffs
The company owns a 3% interest in White Cliffs (the White Cliffs Interest). The White Cliffs Pipeline consists of two 527-mile pipelines, one for crude oil transport and one that is being converted to NGL service that extend from the DJ Basin to Cushing, Oklahoma, with a capacity of approximately 215,000 Bbl/d.
Advantage
The company owns a 50% interest in Advantage. It serves as the operator of the Advantage system, which includes a 70-mile crude oil pipeline in the Southern Delaware Basin from Reeves County, Texas to Crane County, Texas, with a capacity of 200 MBbl/d and 490,000 barrels of storage capacity.
Delaware Crossing
Delaware Crossing completed construction of a 95-mile pipeline system that originates in Pecos County, Texas, and has additional connections in Reeves County and Winkler County, Texas. The crude oil pipeline system began delivering crude oil into all connection points in second quarter 2020. The project footprint is served by a combination of in-field crude oil gathering lines and a trunkline to a hub in Wink, Texas. The project is underpinned by approximately 210,000 dedicated gross acres and nearly 100 miles of pipeline in Pecos, Reeves, Ward and Winkler Counties, Texas.
EPIC Crude
In second quarter 2020, EPIC Crude commenced operations on an approximately 700-mile pipeline, with a capacity of 600 MBbl/d, from the Delaware Basin to the Gulf Coast.
EPIC Y-Grade
In second quarter 2020, EPIC Y-Grade commenced operations on its approximately 700-mile pipeline linking NGL reserves in the Permian Basin and Eagle Ford Shale to Gulf Coast refiners, petrochemical companies, and export markets. The pipeline has a throughput capacity of approximately 440 MBbl/d with multiple origin points.
EPIC Propane
EPIC Propane is constructing a propane pipeline that will run from the EPIC Y-Grade Logistics, LP fractionator complex in Robstown, Texas to the Phillips 66 petrochemical facility in Sweeney, Texas, with additional connectivity to the Markham underground storage caverns.
Saddlehorn
The company owns a 20% interest in Saddlehorn. Prior to its expansion, the Saddlehorn Pipeline was capable of transporting approximately 190 MBbl/d of crude oil and condensate from the DJ Basin and the Powder River Basin to storage facilities in Cushing, Oklahoma owned by Magellan and Plains. During first quarter 2021, the pipeline expanded by 100 MBbl/d, to a new total capacity of 290 MBbl/d.
Customers
For the year ended December 31, 2020, revenues from Noble consisted of 81% and 51% of the company’s midstream services revenues and total revenues, respectively.
Regulations
The company is subject to regulation by the United States Department of Transportation (DOT) under multiple pipeline safety laws, including the Hazardous Liquids Pipeline Safety Act of 1979 (HLPSA), the Natural Gas Pipeline Safety Act of 1968 (NGPSA) and comparable state statutes.
In addition, the company is subject to the requirements of the federal Occupational Safety and Health Act (OSHA) and comparable state statutes, whose purpose is to protect the health and safety of workers, both within the pipeline industry. Moreover, the OSHA hazard communication standard, the Environmental Protection Agency (EPA), community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require that information be maintained concerning hazardous materials used or produced in the company’s operations and that this information be provided to employees, state and local government authorities and citizens.
The company and the entities in which it owns an interest are also subject to OSHA process safety management regulations, which are designed to prevent or minimize the consequences of catastrophic releases of toxic, reactive, flammable or explosive chemicals.
The company must also prepare risk management plans under the regulations promulgated by the EPA to implement the requirements under the Clean Air Act (CAA) to prevent the accidental release of extremely hazardous substances.
The FERC’s regulation of crude oil and natural gas pipeline transportation services and natural gas sales in interstate commerce affects certain aspects of the company’s business and the market for its products and services.
Environmental Matters
The company’s operations are subject to the CAA and comparable state and local requirements. The company also generates solid wastes, including hazardous wastes that are subject to the requirements of the Resource Conservation and Recovery Act (RCRA) and comparable state statutes.
History
Noble Midstream Partners LP was founded in 2014.
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