On Monday, ONEOK Partners, L.P. announced that it has completed its $800 million deal with Chevron Corporation to acquire the company’s natural gas liquids (NGL) pipelines and related assets.
With the acquisition, ONEOK now owns 80 percent interest in the West Texas LPG Pipeline Limited Partnership and 100 percent interest in the Mesquite Pipeline. The Mesquite Pipeline consist of 2,600 miles of NLG gathering pipeline and stretches from the Permian Basin in southeastern New Mexico to East Texas and Mont Belvieu, Texas. ONEOK will operate both pipelines. Martin Midstream Partners L.P. owns the remaining 20 percent of the West Texas LPG Pipeline.
Terry K. Spencer, president and chief executive officer of ONEOK Partners, commented on the new acquisition:
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 … 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 is the largest crude oil and natural gas producing basin in the U.S. It is located in southeastern New Mexico and western Texas. The 15 million acre basin has multistacked producing formations with an estimated 500 rigs currently operating across it.
ONEOK Partners L.P. is known as one of the largest publicly traded master limited partnerships in the U.S. It is also a leader in gathering, processing, storing and transporting natural gas in the U.S. ONEOK also owns one of the nation’s top NGL systems.