Crosstex Energy Inc.’s partnership on Tuesday agreed to pay $10 million to acquire Chevron Corp.’s 60-mile natural gas liquids (NGL) Intracoastal Pipeline, in a move to expand the company’s operations in southern Louisiana.

The pipeline, which extends across southern Louisiana from Patterson to Henry Hub, connects to Crosstex’s Pelican processing plant and accesses other third-party processing plants in the region. NGLs produced at the Pelican plant flow through the Intracoastal Pipeline to Crosstex’s Cajun-Sibon NGL pipeline for delivery to the partnership’s Riverside fractionator. Crosstex’s Eunice, LA, processing plant also is connected to the Cajun-Sibon pipeline.

Crosstex CEO Barry E. Davis said the acquisition was part of the company’s strategy to develop its NGL business in a gas-rich part of the country.

“The Intracoastal Pipeline will serve as a strategic link between our Pelican and Eunice processing facilities and our Eunice and Riverside fractionators,” said Davis. The pipeline, he said, will “enhance” the partnership’s “operational efficiencies and competitive advantages in the region, allowing us to maximize benefits from the processing and NGL value chain.”

The partnership, which like Crosstex Energy Inc. is headquartered in Dallas, operates around 3,300 miles of pipeline, 10 processing plants and three fractionators. It currently provides services for 3.2 Bcf/d of gas, or around 6% of marketed U.S. daily production.

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