(P&GJ) — MPLX LP has closed its $2.375 billion acquisition of Northwind Delaware Holdings LLC (Northwind Midstream), expanding its sour gas gathering, treating, and processing operations in the Delaware Basin of New Mexico.

The deal strengthens MPLX’s Permian natural gas and NGL value chains and is expected to be immediately accretive to distributable cash flow. Including $500 million of estimated incremental capital for expansion projects, the transaction reflects a 7x multiple on forecast 2027 EBITDA and a projected mid-teen unlevered return.

MPLX financed the acquisition through net proceeds from a $4.5 billion senior notes issuance completed in August.

Northwind Midstream’s assets include more than 200,000 dedicated acres, 200 miles of gathering pipelines, two in-service acid gas injection wells with 20 MMcf/d of capacity, and a permitted third well that will raise capacity to 37 MMcf/d. The system currently has 150 MMcf/d of sour gas treating capacity, with expansions underway to increase that to 440 MMcf/d by the second half of 2026. The business is supported by minimum volume commitments from major regional producers.