April 30, 2011 [Zacks Equity Research] - Buckeye Partners L.P. said it has agreed to sell its minority interest in West Texas LPG Pipeline Limited Partnership (WTLPG) for about $85 million. Per the agreement, the partnership’s 20% stake in WTLPG will now be owned by the affiliates of Atlas Pipeline Partners L.P. following the closing of the deal.
West Texas Pipeline L.P. is the owner of a 2,295-mile common-carrier pipeline system that transports NGLs from New Mexico and Texas to Mont Belvieu for fractionation. The remaining 80% interest in WTLPG is held by Chevron Pipeline Company, a part of Chevron Corporation, which operates the pipeline.
Buckeye expects to divert the proceeds from the sale to its core operating assets and also to fund a portion of its internal growth capital projects planned for 2011.
Last month, Buckeye entered into an agreement to buy 33 refined petroleum products terminals and nearly 1,000 miles of refined petroleum products pipelines from BP Products North America Inc., a wholly owned subsidiary of BP Plc for about $225 million. Buckeye expects to close this acquisition also in the second quarter of 2011.
