Enterprise Products Partners LP last week tripled its total ownership interest from 20% to 66% in Dixie Pipeline Co., which owns and operates a 1,300-mile propane pipeline from supply areas in Texas, Louisiana and Mississippi to markets throughout the southeastern United States.
In separate transactions, the Houston-based energy partnership purchased a 26% interest from an affiliate of ChevronTexaco for $40 million, and a 20% interest from an affiliate of ConocoPhillips for $31 million. Enterprise has received all necessary approvals to the transactions, which are expected to be immediately accretive to earnings.
"Dixie is a vital conduit for propane supplies from the Gulf Coast producing area to southeastern wholesale and retail markets," said Robert G. Phillips, CEO of Enterprise. "Enterprise's expertise in managing similar propane delivery systems should enable us to identify growth opportunities where expansions into new markets make sense."
Headquartered in Atlanta, Dixie transports an average of approximately 100,000 bbl/d of propane from its origin in Mont Belvieu, TX and nine other injection points to its eastern termination points in Apex, NC and Alma, GA, as well as seven intermediate delivery terminals. The other owners of Dixie are affiliates of BP, with a 23% interest, and ExxonMobil, with an 11% interest.
Enterprise also announced that it is currently in negotiations with representatives of Dixie to provide some management and business support services.
Intelligence Press Inc. All rights reserved. The preceding news report
may not be republished or redistributed, in whole or in part, in any
form, without prior written consent of Intelligence Press, Inc.