Harvest Midstream is expanding in the Rockies in a $1 billion cash consideration deal with MPLX LP for natural gas gathering and processing assets, the midstream companies announced Aug. 27.
The assets span across the Uinta and Green River basins in Wyoming, Utah and Colorado.
In the Uinta Basin, the assets include approximately 700 miles of gas gathering pipelines and about 345 MMcf/d of active gas processing capacity at the Ironhorse and Stagecoach processing facilities.
In the Green River Basin, the assets include approximately 800 miles of gas gathering and transportation pipelines, about 500 MMcf/d of active gas processing capacity from the Blacks Fork and Vermilion processing facilities and 10,000 bbl/d of fractionator capacity.
As part of the deal, Harvest agreed to supply 12,000 bbl/d of NGLs from the assets to MPLX for seven years beginning in 2028 following the expiration of a pre-existing commitment. Harvest will assume full operational control over the assets when the deal closes.
The deal comes as MPLX works to refine its portfolio, MPLX President and CEO Maryann Mannen said in the company’s press release.
"Evaluating the competitive positioning of our portfolio is a strategic commitment," said Mannen. "The divestiture of these assets better positions our portfolio for growth, anchored in the Marcellus and Permian basins."
The transaction is expected to close in the fourth quarter.