LyondellBasell to buy Texas olefins pipeline system from BP
Global chemicals producer LyondellBasell signed a deal to purchase approximately 200 miles of pipeline near Houston from BP.
LyondellBasell completed the deal through its Equistar Chemicals subsidiary.
The pipelines and metering stations comprise a Houston-area olefins distribution system transporting ethylene and propylene production from Channelview, Texas, to Equistar's storage terminal at Mont Belvieu, Texas, and facilities in Deer Park, La Porte and the Bayport Industrial District in Pasadena, Texas.
The purchase also includes a natural gas liquids (NGL) feedstock supply line into Channelview.
Equistar currently holds a long-term lease for use of the pipelines, which are owned and operated by BP. Acquiring the pipelines provides Equistar with a secure, cost-effective transportation system for its ethylene and propylene production in the Houston area, officials said.
Equistar's pipeline group currently operates and maintains approximately 1,200 miles of pipeline in Texas, and transports approximately 20 billion pounds/year of product and 80 million bbl/year of feedstock.
An undetermined number of BP pipeline employees will join Equistar with the purchase, officials said.
The transaction is subject to government review and is expected to close in August. Terms of the transaction were not disclosed.
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