By OGJ editors
HOUSTON, May 10 -- Oneok Inc., Tulsa, agreed to acquire natural gas liquids businesses from several subsidiaries of Koch Industries Inc., Wichita, Kan., for $1.35 billion. Closing is subject to approval by US regulators.
The transaction will link NGL supply in Oklahoma, the Texas Panhandle, and Kansas with market centers in Conway, Kan., and Mont Belvieu, Tex.
Oneok is buying:
-- Koch Hydrocarbon LP's Midcontinent NGL business. Assets include 100% interest in fractionators at Medford, Okla., and Hutchinson, Kan., having a combined capacity of 240,000 b/d. In addition, Oneok is acquiring 10% ownership of a 110,000 b/d fractionator, two underground storage facilities, and a 9,000 b/d isomerization facility, all at Conway.
-- Koch Pipeline Co. LP and its 1,800 miles of interstate NGL distribution pipelines as well as 2,600 miles of NGL gathering lines owned by Koch Hydrocarbon or Koch Pipeline.
-- MBFF LP, which owns 80% interest in a 160,000 b/d fractionator at Mont Belvieu, and Koch Vesco Holdings LLC, which owns 10.2% interest in Venice Energy Services Co. LLC. Vesco owns a complex near Venice, La., that processes 800 MMcfd of gas and provides gathering, processing, fractionation, storage, and distribution services to Gulf of Mexico producers.
Koch plans to retain interests in a propylene splitter in Venezuela and in companies marketing NGL in Canada. Koch Supply & Trading LP will continue trading gas liquids and olefins globally.
