Inergy Midstream’s subsidiary, Inergy Crude Logistics, LLC, and Enserco Midstream’s subsidiary, Enserco Powder River Basin, LLC, each own an approximate 50% interest in Powder River Basin Industrial Complex, LLC (“PRBIC”), the owner of the Douglas Facility.

The Douglas Facility was placed into manifest service in August 2013, and unit train service is expected to begin during the first quarter of 2014. 

It will provide crude oil takeaway solutions for producers in the emerging Niobrara Powder River Basin shale play.

The Douglas Facility is located in Converse County, Wyoming, atop the emerging Niobrara Powder River Basin shale play. After commencement of unit train service, Inergy Midstream and Enserco Midstream expect to expand throughput capacity to approximately 20,000 barrels per day.

The terminal’s throughput capacity is further expandable to up to 60,000 barrels per day as production volumes increase in the developing Niobrara Powder River Basin shale play. PRBIC has an anchor agreement with a major producer for handling of crude oil volumes at the Douglas Facility.

“We are pleased to partner with Enserco Midstream on this important development project,” said Robert G. Phillips, Chairman, President, and Chief Executive Officer of Inergy Midstream’s general partner.

“Enserco Midstream provides deep energy industry knowledge, and together we look forward to providing first-class takeaway solutions for our producer customers in the Powder River Basin play.”

“This transaction further expands Inergy Midstream’s crude logistics operations into another high-quality, emerging shale play and is an example of the strategic value of the planned merger between Inergy Midstream and Crestwood Midstream Partners (“Crestwood”).

The crude logistics operations of PRBIC are complementary to Crestwood’s recently completed acquisition of a 50% interest in the Jackalope natural gas gathering system and enhance our position in the Powder River Basin play by providing additional services and handling multiple products across the midstream value chain and creates additional opportunities for growth.”

“Enserco Midstream is pleased to join forces with Inergy Midstream to own and operate the Douglas Facility,” said Griff Jones, President and CEO of Twin Eagle Resource Management, LLC, the parent company of Enserco Midstream.

“The strength and reputation of our new partner will help provide us with additional momentum as we expand our geographic reach into the growing shale plays throughout the country.”