Enterprise Deals for Rest of Duncan

Friday, April 29, 2011 @ 03:04 PM gHale

Enterprise Products Partners will pay at least $966 million to purchase the remaining part of energy company, Duncan Energy Partners, it does not already own.

The deal values Duncan Energy Partners at $2.53 billion.

Enterprise Products had in February offered to buy the 42 percent stake of Energy Partners it does not own in a move to ramp up its pipeline services amid higher North American gas production.

EPD’s assets include: 50,200 miles of onshore and offshore pipelines; 192 million barrels (“MMBbls”) of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet (“Bcf”) of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation, transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico.

Duncan Energy Partners owns interests in assets located primarily in Texas and Louisiana, including interests in approximately 9,400 miles of natural gas pipelines with a transportation capacity aggregating approximately 7.9 Bcf per day; more than 1,600 miles of NGL and petrochemical pipelines featuring access to one of the world’s largest fractionation complexes at Mont Belvieu, Texas; two NGL fractionation facilities located in south Texas; approximately 18 MMBbls of leased NGL storage capacity; 8.1 Bcf of leased natural gas storage capacity; and 34 underground salt dome caverns with more than 100 MMBbls of NGL and related product storage capacity at Mont Belvieu.

The deal should close in the third quarter of this year, officials said.

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