RPT-UPDATE 1-Crestwood expands pipeline business in Bakken with $750 mln deal
* Buys privately held Arrow Midstream
* Deal expected to close in fourth quarter
* Crestwood to process 18 pct of Bakken oil after the deal
Oct 10 (Reuters) - Pipeline operator Crestwood Midstream Partners LP said it would buy Arrow Midstream Holdings LLC for about $750 million, making it one of the largest pipeline and storage providers in North Dakota's fast-growing Bakken shale field.
After the deal, the company would process about 18 percent of Bakken's crude oil output, according to Crestwood, at a time when a spurt in shale field production has led to the need for infrastructure to gather, process and ship oil, natural gas and related liquids.
The shale revolution has made North Dakota the most prolific oil-producing state after Texas and helped the United States boost its domestic output. The state's production exceeds that of countries such as Britain and OPEC member Ecuador.
The acquisition of privately held Arrow comes a few months after Crestwood, Inergy LP, Inergy Midstream LP merged to form a $7 billion entity to cater to the demand in the Bakken region.
Arrow operates over 460 miles of pipeline in the region, carrying about 50,000 barrels of oil and 15 million cubic feet of natural gas per day.
The deal is expected to close in the fourth quarter and add to Crestwood's estimated distributable cash flow per limited partner unit in 2014, the company said.
Citi acted as exclusive financial adviser to Crestwood.
(Reporting by Garima Goel in Bangalore; Editing by Don Sebastian and Savio D'Souza)