ONEOK Partners LP (NYSE: OKS) said Dec. 1 that it completed the acquisition of NGL pipelines and related assets from affiliates of Chevron Corp. (NYSE: CVX) for about $800 million.
ONEOK Partners now owns an 80% interest in the West Texas LPG Pipeline Limited Partnership (West Texas LPG) and 100% interest in the Mesquite Pipeline (Mesquite). They collectively consist of about 2,600 miles of NGL gathering pipelines from the Permian Basin in southeastern New Mexico to East Texas and Mont Belvieu, Texas.
ONEOK Partners operates both pipelines. The remaining 20% percent of West Texas LPG is owned by Martin Midstream Partners LP (NASDAQ: MMLP), ONEOK said.
"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," he added.
Oklahoma City-based ONEOK Partners LP is a domestic-focused midstream MLP.
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