|Enterprise Completes Purchase of Lou-Tex Propylene Pipeline|
HOUSTON--(BUSINESS WIRE)--Feb. 25, 2000--Enterprise Products Partners L.P. (NYSE:EPD) announced today that it has completed the acquisition of the Lou-Tex propylene pipeline from Concha Chemical Pipeline Company, an affiliate of Shell Oil Company, for an undisclosed amount of cash. The Lou-Tex propylene pipeline is a 263-mile, 10" pipeline that transports chemical grade propylene from Sorrento, La., to Mont Belvieu, Texas. The pipeline will have a capacity of 50,000 barrels per day upon completion of an expansion project currently in progress.
Lou-Tex, a common carrier pipeline regulated by the Federal Energy Regulatory Commission, transports chemical grade propylene produced from the petrochemical and refinery corridor along the Mississippi River between Baton Rouge and New Orleans to the larger petrochemical complex east of Houston.
As part of the transaction, Shell Chemicals entered into a 20-year agreement to preferentially exchange all of their excess Louisiana chemical grade propylene to Mont Belvieu. Enterprise also acquired a salt dome storage well in Sorrento with approximately 480,000 barrels of storage capacity and a 27-mile, 6" pipeline that links the company's Norco fractionation unit with the Sorrento storage facility.
"Lou-Tex is an excellent pipeline asset which integrates well into our liquids transportation, storage and distribution system. We value our relationship with Shell Chemicals and are pleased to provide transportation services to them through this long-term agreement," said O.S. "Dub" Andras, president and CEO of Enterprise.
Andras continued, "This acquisition is consistent with our objective to grow our fee-based businesses through development of new projects and accretive acquisitions."
The effective date of the transaction is March 1, 2000.
Enterprise Products Partners L.P., with an enterprise value of approximately $2 billion, is one of the leading midstream energy service companies in North America, providing the complete services of processing, fractionation, transportation and storage to producers of NGLs and consumers of NGL products. Enterprise has ownership interests in and operates some of the largest natural gas processing and NGL fractionation facilities in the United States, the largest commercial isobutane complex in the United States, two propylene fractionation facilities, an NGL import/export terminal, approximately 43.7 million barrels of net storage capacity, a 2,400-mile network of pipelines and an MTBE production facility, all located on the U.S. Gulf Coast. The Gulf Coast accounts for approximately 55% of U.S. NGL production and 75% of U.S. demand for NGLs.
This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 based on the beliefs of the company, as well as assumptions made by, and information currently available to, management. Although Enterprise believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.
CONTACT: Enterprise Products Partners L.P., Houston Randy Fowler, 713/880-6694 http://www.epplp.com