Oneok Partners has agreed to acquire $800 million in natural gas liquids (NGL) pipeline and other assets from Chevron. The deal includes approximately 2,600 miles of NGL gathering pipeline from the Permian Basin in New Mexico to east Texas and Mont Belvieu, Texas. Oneok will receive an 80% interest in the West Texas LPG Pipeline Limited Partnership and a 100% interest in the Mesquite Pipeline. Martin Midstream Partners owns the remaining 20% of West Texas LPG.
The acquisition will grow Oneok’s NGL gathering system by 60% to nearly 6,900 miles of pipeline. Its ownership interest in the pipelines will add 230,000 barrels per day of unfractionated NGL supply. Oneok’s unfractionated NGL capacity is expected to increase to 310,000 barrels per day based on expected commitments from producers.
The transaction is expected to close in the fourth quarter of this year.
SEE ALSO: Liquids pipeline mileage increased 9.3% in past five years
