Midstream operator Easton Energy LLC has agreed to buy a petrochemical pipeline system that runs from Houston to Corpus Christi from oil major Exxon Mobil Corp., moving to capitalize on South Texas' growing petrochemical market.
The South Texas Pipeline System has 720 miles of pipeline and runs from Exxon Mobil's Clear Lake and Katy Gas Plants to Energy Transfer LP's King Ranch Gas Plant and the Port of Corpus Christi. The line has historically been used to transport everything from oil and natural gas liquids, but most recently shipped refinery grade propylene.
The system will also connect to Easton Energy's 50 million barrel salt dome storage facility in Markham, Texas, which is located between the petrochemical markets in Houston and Corpus Christi.
The acquisition is anticipated to close early next year. The companies did not disclose a price on the deal.