Oneok Inc., Tulsa, has acquired the remaining 20% interest in the West Texas LPG Pipeline LP from Martin Midstream Partners LP for $195 million. Oneok will become the sole owner of the natural gas liquids pipeline system. Oneok completed the acquisition of its initial 80% interest in West Texas LPG in December 2014.
Owning the West Texas LPG “allows Oneok to more effectively integrate it into the rest of our extensive NGL system, positioning us for future expansion opportunities currently under development,” said Terry K. Spencer, Oneok president and chief executive officer. In October, the companies announced plans to invest $200 million to expand the system into the Delaware basin (OGJ Online, Oct. 24, 2017).
The transaction is expected to close July 31 and be funded with cash on hand.
West Texas LPG Pipeline consists of 2,600 miles of NGL pipeline in Texas and New Mexico and provides transportation to the Mont Belvieu market center from nearly 40 third-party gas processing plants in the Permian basin.
