Oneok’s Palo Duro Pipeline Co. subsidiary Tuesday announced it reached an agreement to sell certain natural gas transmission and gathering pipelines and compression to an affiliate of Houston-based Enbridge Energy Partners LP. for approximately $13 million.

Specifically, Oneok sold to Enbridge Energy Partners approximately 400 miles of natural gas transmission and gathering pipelines and approximately 5,200 horsepower of compression. The pipeline originates in Hemphill County, TX and terminates south in Coke County, TX. Current throughput is approximately 18,000 MMBtu/d, however under current conditions the pipeline can transport up to 75,000 MMBtu/d.

“The sale of these assets continues to demonstrate our commitment to divest of non-core assets, allowing us to focus on the remaining assets within our Transportation and Storage segment located in Texas, Kansas and Oklahoma, the states where Oneok has operations,” said John W. Gibson, President-Energy.

The transaction is expected to close by March 1, 2004.

During an earnings conference call Tuesday, Oneok Chairman David Kyle said he expected the company would continue making small acquisitions around its core business, using free cash flow of about $150 million expected to build up this year.

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