Houston-based TEPPCO Partners LP. said Friday that it has closed its previously announced acquisition of the Chaparral and Quanah NGL pipelines for approximately $132 million. Acquired from Diamond-Koch II LP and Diamond-Koch III LP, TEPPCO Partners projects first full-year earnings before interest, taxes, depreciation and amortization (EBITDA) from the systems to be approximately $16 million. The acquisition was first announced in early January (see Daily GPI, Jan. 10).

The 800-mile Chaparral system extends from West Texas and New Mexico to Mont Belvieu, TX, which is located along the upper Texas Gulf Coast. The pipeline delivers NGL to fractionators and existing TEPPCO storage in Mont Belvieu. The approximately 170-mile Quanah Pipeline is a NGL gathering system located in West Texas. The Quanah Pipeline begins in Sutton County, TX, and connects to the Chaparral Pipeline near Midland, TX.

TEPPCO Partners said the pipelines are connected to 27 gas plants in West Texas and have approximately 28,000 hp of pumping capacity at 14 stations. The transaction also includes the San Andres facility in Andrews County, Texas — two underground NGL storage wells with 220,000 barrels of combined capacity. As previously announced, the assets will be operated and commercially managed by Duke Energy Field Services LP under agreements with TEPPCO.

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