Enterprise Acquires Additional Interest in Mont Belvieu NGL Fractionator

abarrelfullabarrelfull wrote on 13 Jan 2014 11:30

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July 28, 1999

Enterprise Products Partners L.P. (NYSE:EPD) announced today that it has agreed to general terms and conditions for Enterprise to purchase Kinder Morgan Energy Partners L.P.'s 25% indirect ownership interest in a 210,000 barrel per day natural gas liquids (NGL) fractionating facility located in Mont Belvieu, Texas, for $41 million in cash and approximately $4 million in debt assumption..

Upon completion of this transaction, Enterprise's ownership interest in the Mont Belvieu fractionation facility will increase from 37.5% to 62.5%. This fractionator is located in Enterprise's Mont Belvieu processing complex which also includes butane isomerization, propane/propylene fractionation, MTBE production, underground storage and import/export facilities on the Houston Ship Channel. Enterprise serves as the operator of the facility.

"NGL fractionation is one of our core, fee-based businesses. Enterprise has developed, constructed, expanded and operated this facility for almost 20 years. We are pleased to have the opportunity to increase our ownership interest, and the results of this transaction will be accretive to our unitholders, " said O.S. "Dub" Andras, president and chief executive officer of Enterprise.

Mont Belvieu, located twenty-five miles east of Houston, is the hub of the domestic NGL industry because of its proximity to the refinery and petrochemical markets on the Gulf Coast. It is located on a large naturally occurring salt dome that provides for the underground storage of large quantities of NGLs.

This transaction is subject to the completion of a definitive agreement and clearance under the Hart-Scott-Rodino Antitrust Act. The companies anticipate that closing will occur in thirty to sixty days.

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