WhiteWater, MPLX, and Enbridge, via their WPC joint venture (JV) have made a final investment decision with an affiliate of Targa Resources to proceed with the construction of the Blackcomb natural gas pipeline project in the US.
The Blackcomb pipeline project is designed to transport up to 2.5 billion cubic feet per day (Bcf/d) of natural gas over approximately 587km using a 42-inch diameter pipeline. The natural gas pipeline will extend from the Permian Basin in West Texas to the Agua Dulce area in South Texas.
It will source natural gas from multiple upstream connections in the Permian Basin, including gas processing facilities in the Midland Basin and the Agua Blanca pipeline, another venture involving WhiteWater and MPLX.
The FID on the Blackcomb project has been made after obtaining the necessary firm transportation agreements with primarily investment-grade shippers. These include Devon Energy, Marathon Petroleum, Diamondback Energy, and Targa Resources.
The WPC JV already operates the 724km long Whistler natural gas pipeline along with other midstream assets in the US.
In the Blackcomb pipeline, the WPC JV owns a stake of 70% while Targa Resources has a 17.5% ownership. MPLX holds a stake of 12.5% in the natural gas pipeline project, in addition to its existing stake in WPC.
WhiteWater will oversee the construction and operation of the Blackcomb natural gas pipeline, which is anticipated to be operational in the second half of 2026, subject to customary regulatory and other approvals.
WhiteWater CEO Christer Rundlof said: “We are excited to partner with Targa by leveraging Whistler’s expansive footprint in Waha and Agua Dulce to develop the Blackcomb Pipeline. Blackcomb will provide much needed incremental natural gas takeaway capacity for Permian shippers.”
The WPC joint venture, which includes WhiteWater (50.6%), MPLX (30.4%), and Enbridge (19%), manages other key infrastructure such as the Rio Bravo pipeline project in Texas, 70% of the ADCC natural gas pipeline in Texas, and a 50% interest in the Waha gas storage facility in in Pecos County, Texas.
WhiteWater’s stake in WPC, including its involvement in the Blackcomb project, is owned by I Squared Capital. The WPC infrastructure facilitates the transportation of natural gas from the Permian Basin to South Texas, with connections to liquefied natural gas (LNG) export markets.
