American Midstream acquires 100-mile pipeline in Gulf of Mexico

Okeanos pipeline has total capacity of 1 Bcf per day, connects two platforms and one lateral

DENVER- American Midstream Partners, LP today announced the acquisition of a 66.7 per cent interest in the Okeanos pipeline, a 100-mile gas gathering system located in the Gulf of Mexico, from an affiliate of the company’s general partner.

Acquisition of the Okeanos pipeline complements the American Midstream’s existing offshore infrastructure and further strengthens their position as a significant and integrated participant in offshore infrastructure, particularly in the deep-water.

The acquisition was fully funded under the $225 million financing announced on April 25 in conjunction with the acquisition of interests in Destin, Tri-States, and Wilprise, as well as crude, natural gas, and salt water onshore and offshore pipelines acquired from Chevron and the acquisition of an incremental interest in Delta House.

ExxonMobil platform in Gulf of Mexico Julia field
Source: www.the-eic.com

The benefit of the acquisition of a majority interest in Okeanos was included in the updated 2016 forecast announced on April 25.

The Okeanos pipeline has total capacity of 1.0 billion cubic feet per day and connects two platforms and one lateral, terminating at the Destin Main Pass 260 platform in the Mississippi Canyon region of the Gulf of Mexico.

The pipeline is designed to meet capacity requirements for platforms currently connected and has existing capacity to accommodate third-party volumes via subsea tie-backs or new export lines.

Contracted volumes on Okeanos are based on life-of-field dedication. Enbridge, Inc. is the minority interest holder.