By OGJ editors
HOUSTON, Aug. 18 -- Sunoco Logistics Partners LP, Philadelphia, has reached definitive agreements to acquire a 37.35% interest in Wilprise Pipeline Co. LLC and a 16.67% interest in Tri-States NGL Pipeline LLC from Williams Cos. Inc., Tulsa.
Total consideration for the interests in both pipelines is $26.5 million, with an additional $8.3 million payable based on volumes transported through 2006. The transactions are subject to purchase rights held by existing owners. Closing is expected within 90 days.
Tri-States is a 161-mile NGL pipeline with a capacity of 95 million b/d originating near Mobile Bay, Ala., and terminating at Kenner Junction near New Orleans. Tri-States transported 56 million b/d in 2002.
Wilprise, a 33-mile NGL pipeline with a capacity of 60 million b/d originating at Kenner Junction and terminating at Sorrento, La., transported 42 million b/d in 2002.
"These pipelines are well positioned to take advantage of the significant growth in natural gas (production) expected," in the Gulf of Mexico, said Sunoco Logistics Pres. and CEO Deborah M. Fretz.
Sunoco Logistics Partners was formed to acquire, own, and operate Sunoco Inc.'s refined product and crude oil pipelines and terminal facilities.