ONEOK Partners Completes Permian Basin Acquisitions
ONEOK completed its acquisition of an 80 percent interest in the West Texas LPG Pipeline and 100 percent interest in the Mesquite Pipeline in the Permian Basin in southeastern New Mexico to East Texas and Mont Belvieu, Texas.
ONEOK Partners, L.P. welcomed December by announcing that it completed the acquisition of natural gas liquids (NGL) pipelines and related assets from affiliates of Chevron Corp.
With the approximately $800 million investment, ONEOK Partners now owns an 80 percent interest in the West Texas LPG Pipeline LP and 100 percent interest in the Mesquite Pipeline.
Together, the pipelines collectively consist of approximately 2,600 miles of NGL gathering pipelines extending from the Permian Basin in southeastern New Mexico to East Texas and Mont Belvieu, Texas. ONEOK Partners is the operator of both pipelines. The remaining 20 percent of West Texas LPG is owned by Martin Midstream Partners LP.
“The West Texas LPG and Mesquite NGL pipelines will integrate into our existing natural gas liquids segment’s portfolio of assets and provide fee-based earnings to the partnership,” said Terry K. Spencer, president and CEO of ONEOK Partners. “With the closing of this transaction, we welcome the approximately 75 employees currently operating these assets to the ONEOK Partners team. We look forward to working with all of them and assisting them with their transition to ONEOK Partners.”
The Permian Basin, located in southeastern New Mexico and western Texas, is the largest crude-oil and natural gas producing basin in the U.S. – three times larger than the Bakken Shale in North Dakota. This basin encompasses 15 million acres and has multistacked producing formations with approximately 500 rigs currently operating across the region.
Tags: Chevron Corp., ONEOK Partners, Permian Basin
