Enterprise to buy 20 salt dome storage caverns from Diamond-Koch

Oct. 29, 2001
Enterprise Products Partners LP, Houston, is buying Mont Belvieu, Tex., storage facilities from Ultramar Diamond Shamrock Corp. and Koch Industries Inc.

By the OGJ Online Staff

HOUSTON, Oct. 29 -- Enterprise Products Partners LP, Houston, said Monday it is buying storage facilities from Diamond-Koch, LP and Diamond-Koch III, LP, which are jointly owned affiliates of Ultramar Diamond Shamrock Corp. and Koch Industries Inc.

The facilities at Mont Belvieu, Tex., consist of 30 salt dome storage caverns with capacity of 77 million bbl. The facilities provide storage services for mixed natural gas liquids, ethane, propane, butanes, natural gasoline, and olefins, including ethylene, polymer grade propylene, chemical grade propylene, and refinery grade propylene. The caverns serve the largest petrochemical and refinery complex in the US.

O.S. "Dub" Andras, Enterprise president and CEO, said, "This is an attractive fee-based business with long-term contracts. These assets will integrate well with our fractionation and pipeline facilities at Mont Belvieu."

The boards of both companies must approve the sale, which is due to close by Dec. 31.

Enterprise provides midstream energy services to Gulf Coast producers and consumers of gas and gas liquids, including gas transportation, processing and storage, and NGL fractionation, transportation, storage, and terminals.