By the OGJ Online Staff
HOUSTON, July 2 -- EOTT Energy Partners LP, Houston, acquired processing and transportation assets from an affiliate of Enron Corp. and a natural gas liquids storage facility previously held by an Enron affiliate under a lease financing agreement for $120 million.
EOTT acquired a hydrocarbon processing complex in Morgan's Point, Tex., and a liquids pipeline grid system. The liquids storage facility is in Chambers County, Tex.
The company has entered into a 10-year tolling agreement for production from the processing complex, which is currently producing methyl tertiary butyl ether and isobutylene, and a 10-year storage and transportation agreement for the use of the storage and pipeline grid system.
Both agreements are with an affiliate of Enron, which retains all existing third party commodity, transportation, and storage contracts associated with the acquired storage and pipeline grid system.
The deal will increase EOTT's earnings before interest, taxes, depreciation, and amortization by $20 million/year, said Dana Gibbs, president and CEO of EOTT Energy Corp., which is the general partner of EOTT Energy Partners.