By the OGJ editors
HOUSTON, Apr. 9 -- Koch Holdings Enterprises LLC has bought 40% ownership of a natural gas liquids fractionator from subsidiaries of Valero Energy Corp., San Antonio. Terms of the deal aren't disclosed.
Koch Holdings Enterprises, through its subsidiaries, is now an 80% shareholder in the 160,000 b/d Mont Belvieu 1 fractionator, which continues to be operated by Koch Hydrocarbon Southwest LLC. Duke Energy Corp., Charlotte, NC, has 20% ownership. Mont Belvieu, Tex., is 30 miles east of Houston.
"This acquisition is part of an overall strategy to realign the processing, transportation, marketing, and trading businesses of the various Koch natural gas liquids companies," said Ron Vaupel, president of Koch Hydrocarbon LP.
Until this transaction, Diamond-Koch entities50:50 ventures originally formed by Koch subsidiaries and Ultramar Diamond Shamrock Corp., San Antonioheld 80% interest in the fractionator. Valero acquired Ultramar Diamond Shamrock (OGJ, May 14, 2001, p. 38).
Koch Holdings Enterprises bought the Valero shares for an undisclosed price.