Energy Transfer LP will acquire WTG Midstream LLC (WTG) in a transaction valued at approximately US$3.25 billion. WTG provides midstream services including wellhead gathering, compression, intra-basin transportation, treating, and processing services. The company’s 6000-mile (9656-km) pipeline network serves operators in the Midland Basin.
WTG also operates eight processing plants with a total capacity of approximately 1.3 Bcf/d (36.8 x 106 m3/d) and is constructing two new plants with an additional capacity of approximately 0.4 Bcf/d (11.3 x 106 m3/d). The first new plant is expected to be in service in the third quarter of 2024 and the second plant in the third quarter of 2025.
The addition of WTG assets is expected to provide Energy Transfer with increased access to growing supplies of natural gas and natural gas liquids (NGL) volumes, enhancing its Permian operations and downstream businesses. The acquisition also includes a 20% interest in BANGL Pipeline, an approximately 425-mile (683-km) NGL pipeline with an initial capacity of 125,000 Bbls/d expandable up over 300,000 Bbls/d) connecting the Permian Basin to markets on the Texas Gulf Coast.
The transaction is expected to close in the third quarter of 2024, subject to regulatory approval and customary closing conditions.
