Houston-based Enterprise Products Partners LP said that an affiliate has entered into an agreement to acquire 100% of the Toca-Western natural gas processing plant and natural gas liquids fractionator from Western Gas Resources Inc. for $32.5 million in cash. The plant processes gas that is delivered by Southern Natural Gas.

Located in St. Bernard Parish, LA, near Enterprise’s existing Toca natural gas processing facility, the plant provides midstream energy services to producers of gas from the continental shelf and deepwaters of the Gulf of Mexico. Under the agreement, Enterprise will gain a gas processing plant with a capacity of 160 MMcf/d and a fractionator that can separate 14,200 bbl/d of mixed natural gas liquids into propane, normal butane, isobutane and natural gasoline. The acquisition also includes storage and truck, rail and barge loading facilities that support the complex.

The company said the purchase is subject to a preferential purchase right by the owners of the Yscloskey, LA, natural gas processing plant. Enterprise is one of the largest owners in the Yscloskey plant with a 28.2% interest. Should any of these owners exercise their respective right to acquire an interest in the Toca-Western facilities, it would reduce Enterprise’s ownership interest and the related purchase price. Because of the preferential right, Enterprise said the transaction has an effective date of June 1, but is expected to close on Sept. 24.

Enterprise is the second largest publicly traded midstream energy partnership with an enterprise value of approximately $5 billion.

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