Sunoco Logistics Partners LP said Monday that it has reached definitive agreements to acquire interests in two natural gas liquids (NGL) pipelines from the Williams Companies. The interests include a 37.35% share in Wilprise Pipeline Co. LLC. and a 16.67% stake in Tri-States NGL Pipeline LLC.

Tri-States is a 161-mile NGL pipeline with a capacity of 95 Mb/d, originating at gas processing plants located near Mobile Bay, AL and terminating at Kenner Junction near New Orleans, LA. In 2002, Tri-States transported 56 Mb/d.

Wilprise is a 33-mile NGL pipeline with a capacity of 60 Mb/d originating at Kenner Junction and terminating at Sorrento, LA. It transported 42 Mb/d in 2002. Sunoco Logistics said total consideration for the interests in both pipelines is $26.5 million, with an additional $8.3 million payable based on volumes transported through 2006.

“These pipelines are well positioned to take advantage of the significant growth in natural gas expected in the offshore Gulf of Mexico,” said Deborah M. Fretz, CEO of Sunoco Logistics. “These acquisitions are consistent with our business plan which calls for growth in areas where we do not operate today, specifically natural gas liquids.

“We expect the acquisitions to be immediately accretive,” she added. “The transactions will be financed using our revolving credit facility, and we expect to keep our investment grade rating by maintaining a conservative capital structure over the medium and long term.”

Sunoco Logistics noted that the transactions are subject to purchase rights held by existing owners and customary closing conditions. The company expects to close on the acquisitions within the next 90 days.

Commenting on the transaction, Standard & Poor’s Ratings Services (S&P) said the acquisition would have no effect on the ratings or outlook of Sunoco Logistics (BBB/Stable/–). S&P noted that the deal follows Sunoco Logistics’ announcement on Aug. 12 that it acquired a 13.2% stake in West Shore pipeline for $15.5 million.

“While neither of these transactions is of a magnitude to warrant concern about strain on the partnership’s capital structure, Standard & Poor’s expects Sunoco Logistics to ultimately fund its acquisitions in a balanced manner,” said S&P’s John Thieroff. “In addition, once the cumulative amount of the acquisitions reaches a level such that accessing public equity markets is efficient, the partnership will do so.”

Philadelphia-based Sunoco Logistics was formed to acquire, own and operate Sunoco Inc.’s refined product and crude oil pipelines and terminal facilities.

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