A subsidiary of Enterprise Products Partners LP completed the purchase of an additional 8.38% ownership interest in the Dixie Pipeline Co. from a Conoco Inc. affiliate, officials said Monday.
The price of that acquisition was not disclosed. But officials said Enterprise and its subsidiaries now own about 20% of Dixie Pipeline Co., which owns Dixie Pipeline, a major propane pipeline that transports propane from natural gas liquids (NGL) fractionators and refineries in Texas, Louisiana, and Mississippi, to customers throughout the southeastern US.
The pipeline extends some 1,100 miles from Mont Belvieu, Tex., to near Raleigh, NC, and includes a 204-mile lateral into Georgia.
"Enterprise is a major shipper on Dixie Pipeline and we are pleased to increase our ownership interest in this attractive pipeline asset. This purchase is consistent with our objective to grow our portfolio of fee-based assets in the natural gas and NGL value chain," said O.S. "Dub" Andras, president and chief executive officer of the general partner of Enterprise Products Partners.
Conoco will continue as a major shipper and marketer of propane in the southeastern US on the Dixie system. Proceeds from the sale of Conoco's interest will be deployed into the company's more strategic and core assets.
Enterprise Products Partners is the second largest publicly traded, midstream energy partnership with an enterprise value of approximately $2.6 billion. It is concentrated primarily on the Gulf Coast, which accounts for approximately 55% of domestic NGL production and 75% of domestic NGL demand.