Louis Dreyfus Energy Buys Mont Belvieu Storage Facility
HOUSTON - Louis Dreyfus Energy Services has purchased TE Products Pipeline Company Limited Partnership’s (“TEPPCO”) interest in Mont Belvieu Storage Partners (“MBSP”) in Mont Belvieu, Texas. Louis Dreyfus Energy Services L.P. and TEPPCO previously each owned 50 percent in the partnership.
“Acquiring full ownership of the Mont Belvieu storage facility furthers our strategy of owning assets that benefit from our energy merchant business,” said William C. Rippe, executive vice president of LDH Energy.
The Mont Belvieu storage facility has 43 million barrels of natural gas liquids capacity and a short-haul transportation pipeline shuttle system that ties the Mont Belvieu terminal to refinery and petrochemical facilities along the upper Texas Gulf Coast. The acquisition includes 800 acres of surface rights.
“We will assume both commercial and physical operations of the facility,” said Mike Dowling, vice president and managing director of business development for LDH Energy, “but we see no other immediate changes.”
In April of 2006, Louis Dreyfus Pipeline L.P. announced that it had initiated the permitting process to build an NGL pipeline from its current Hull, Texas, destination to the Mont Belvieu natural gas liquids hub. Joe Rothbauer, vice president of midstream operations for LDH Energy, said that the pipeline will provide incremental NGL take-away capacity that is important for continued Barnett Shale development.
Construction of the Hull to Mont Belvieu extension began in February. When completed, the 31-mile pipeline will provide direct access to the Mont Belvieu NGL hub. The 12-inch pipeline is expected to be operational by the second quarter 2007 and will have a capacity of more than 120,000 barrels per day.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.