ONEOK Partners To Buy NGL Pipelines From Chevron For $800 Mln

(RTTNews) - ONEOK Partners L.P. (OKS) Monday said it agreed to purchase natural gas liquids pipelines and related assets from affiliates of Chevron Corp. (CVX) for about $800 million.

The purchase includes an 80 percent interest in the West Texas LPG Pipeline Limited Partnership and 100 percent interest in the Mesquite Pipeline. Following the closing of the transaction, ONEOK Partners will be the operator of both pipelines. The remaining 20 percent of West Texas LPG is owned by Martin Midstream Partners L.P.

"With this acquisition, along with other announced capital-growth projects in North Dakota, Oklahoma and Wyoming, the partnership's total investment has increased by more than $3 billion in the last year," said Terry K. Spencer, president and chief executive officer of ONEOK Partners.

"These assets will provide fee-based earnings to the partnership and further expand our natural gas liquids segment's portfolio of assets while positioning us for additional growth opportunities," Spencer added.