NGL Sells Its Share of Glass Mountain Pipeline in Northern Oklahoma

A $300 million sale of its 50% share in the Glass Mountain Pipeline in Oklahoma has been announced by Tulsa-based NGL Energy Partners LP.

The sale was to an affiliate of BlackRock Inc.’s Global Energy and Power Infrastructure Fund in partnership with Navigator Energy Services. The sale should be completed before Dec. 31, 2017.

Glass Mountain is a multi-play crude transportation system in the state and services the STACK/Merge, Granite Wash and Mississippi Lime plays. It delivers crude oil to one million barrels of GMP-owned storage at Cushing.

“The expected growth in the STACK and Merge plays becomes more of a reality every day with increased drilling activity and some of the best returns in the shale oil plays,” said Mike Krimbill, NGL’s Chief Executive Officer. “We believe the Navigator team will be able to commercially capitalize on this potential with this best-in-class asset.”

The Glass Mountain Pipeline started commercial operations in the spring of 2014 and at that time was 215 miles in length. But a 44-mile extension into the STACK was announced last year and should be completed in the coming month with operations to begin in early 2018.

 

“By partnering with the Navigator Energy Services management team in the acquisition of Glass Mountain, we look forward to delivering our clients a very attractive midstream investment opportunity,” said Mark Saxe, Managing Director in BlackRock’s Global Energy & Power Infrastructure group. “As a leading global energy infrastructure investor, our deep industry experience and technical expertise will enable us to bring strategic and operational insights essential to take the assets on to the next phase of their life cycle.”

 

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