HOUSTON--(BUSINESS WIRE)--Enterprise Products Partners L.P. (NYSE:EPD) today announced that its wholly-owned subsidiary, Enterprise Products Operating LLC, (“Enterprise”) has purchased a 70 percent interest in the Rio Grande Pipeline from HEP Navajo Southern, L.P., a subsidiary of Holly Energy Partners, L.P. Enterprise serves as operator and BP retains its 30 percent ownership stake in the natural gas liquids (NGL) pipeline, which originates near Odessa, Texas in Ector County. The 265-mile, 8-inch diameter pipeline transports primarily butane/propane mix to a Pemex-owned interconnect at the Mexican border south of El Paso. From that point, Pemex transports the NGLs to its Mendez Terminal near Juarez, Mexico for distribution to consumers.
“This transaction serves as yet another strong example of our ability to capitalize on the opportunities created by our integrated midstream energy network to efficiently provide value-added services for customers and accretive cash flow for Enterprise investors,” said Michael A. Creel, president and chief executive officer of Enterprise. “The acquisition is supported by firm transportation contracts and gives us direct access to growing end-user markets for home heating and cooking fuel.”
All of the NGLs currently being delivered into the Rio Grande Pipeline originate from Enterprise’s Mid-America Pipeline system and are fractionated at Hobbs in Gaines County, Texas, making the transaction a logical extension of the partnership’s existing infrastructure. Presently, the Rio Grande Pipeline has the capacity to transport as much as 25,000 barrels per day of NGLs.
Enterprise Products Partners L.P. is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The partnership’s assets include: more than 48,000 miles of onshore and offshore pipelines; approximately 200 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), 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. For additional information visit www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings L.P., visit www.enterprisegp.com.
This news release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, counterparty risks, market conditions, operating risks, governmental regulations and other factors discussed in Enterprise Products Partners L.P.'s filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.