American Midstream Partners LP (AMP) has agreed to sell its propane marketing and services business to SHV Energy NV for $170 million as part of an effort to simplify its businesses and redeploy capital from noncore assets to the Gulf of Mexico, Permian basin, and East Texas.
The deal, expected to close in the third quarter, follows AMP’s June acquisition of the 107-mile Viosca Knoll gathering system from Genesis Energy LP for $32 million.
Viosca Knoll serves producing fields in the Main Pass, Mississippi Canyon, and Viosca Knoll areas in the deepwater gulf that connect to several major delivery pipelines, including AMP’s High Point and Destin pipelines.
AMP owns or has an ownership interest in 4,000 miles of interstate and intrastate pipelines, as well as ownership in gas processing plants, fractionation facilities, an offshore semisubmersible floating production system with a nameplate processing capacity of 100,000 b/d of crude oil and 240 MMcfd of gas, and terminal sites with 6.7 million bbl of storage capacity.