Houston-based Louis Dreyfus Energy Services LP on Friday completed the acquisition of a 1,400-mile West Texas natural gas liquids (NGL) pipeline system and the Hattiesburg, MS liquefied petroleum gas (LPG) terminal from subsidiaries of ExxonMobil Corp. No financial details were disclosed.
The NGL pipeline runs from Midland to Hull, TX, with multiple injection points in the Permian Basin through to East Texas. The Hattiesburg LPG terminal consists of 4.5 million bbl of propane and butane storage with truck rack, rail rack and Dixie Pipeline connections. Dreyfus intends to maintain the Hattiesburg terminal’s existing third-party storage lease business and to expand the product service offering to include LPG supply as well as storage and logistics services.
“These transactions will allow our NGL business to continue its growth, enabling Louis Dreyfus to expand its product offerings to include storage and transportation services as well as NGL supply and marketing,” said William C. Rippe, executive vice president.
Before its Exxon acquisition, Dreyfus’ asset base included its 50% interest in Mont Belvieu Storage Partners LP, a joint venture with an affiliate of TEPPCO Partners LP., and its approximate 20% interest in the Sea Robin Gas Processing Plant (Sea Robin). MB Storage Partners holds assets that include approximately 40 million bbl of NGL storage capacity at its Mont Belvieu, TX terminal and a short-haul transportation pipeline shuttle system that ties the Mont Belvieu terminal to refinery and petrochemical facilities along the upper Texas Gulf Coast. Sea Robin is a 660 MMcf/d gas processing plant in Louisiana that processes wet natural gas primarily from offshore Gulf Coast production fields.
“The Louis Dreyfus Group has a long history of combining commodity merchant activities with key assets that allow us to provide more supply and marketing flexibility to our producer and consumer customers,” said Timothy J. Stuart, president. “We expect to pursue other strategic opportunities like the ExxonMobil assets that underpin our commodity merchant activities and allow us to fully leverage our merchant position in NGLs, natural gas, refined products and petrochemicals.”
Louis Dreyfus Energy Services is a part of the Louis Dreyfus Group, an organization of companies owned and controlled by Paris-based Louis Dreyfus SAS.
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