Enterprise Products Partners LP will sell its Mississippi natural gas storage facilities to Boardwalk HP Storage Co. LLC for $550 million. The Mississippi facilities have about 29 bcf total storage capacity.
EPP described the facilities as a standalone asset and the sale as consistent with its drive toward asset integration. The company said proceeds of the sale would be used to fund ongoing construction projects.
Projects recently announced by EPP include the Wrangler crude oil pipeline between Cushing, Okla., and the Texas Gulf Coast refining complex (OGJ Online, Sept. 29, 2011) and the Texas Express NGL pipeline between Skellytown, Tex., and fractionation and storage facilities in Mont Belvieu, Tex. (OGJ Online, Sept. 6, 2011). EPP is also expanding its Mont Belvieu fractionation facilities, with completion expected in early 2013.
Pending regulatory approvals, EPP expects the Mississippi storage sale to close during the fourth quarter.
Contact Christopher E. Smith at [email protected].