Kirkland & Ellis LLP counseled Blackstone Energy Partners on its decision to purchase from Targa Resources Corp. (NYSE:TRGP) a 25 percent joint venture interest in its previously announced Grand Prix natural gas liquids pipeline.
Once completed, Grand Prix will be a new 300 thousand barrel per day (BPD) common carrier NGL pipeline from the Permian Basin to Mont Belvieu, Texas, and with expansion capability to 550 thousand BPD.
Concurrent with the sale of the interest in Grand Prix to Blackstone, Targa and EagleClaw Midstream Ventures, LLC, a Blackstone portfolio company, executed a long-term Raw Product Purchase Agreement for transportation and fractionation (T&F) services whereby EagleClaw has dedicated and committed significant NGLs associated with EagleClaw's natural gas volumes produced or processed in the Delaware Basin. EagleClaw is the largest private natural gas gathering and processing company in the Delaware Basin based on almost 275,000 dedicated acres primarily in Reeves County. The full release is available here.
The Kirkland team was led by corporate partners Rhett Van Syoc and Andrew Calder.