Plains All American Pipeline LP (PAA) and Plains GP Holdings LP have signed an agreement with Occidental Petroleum Corp. to purchase Oxy’s 50% interest in BridgeTex Pipeline Co. LLC for $1.075 billion.
BridgeTex, a company jointly owned by Oxy and Magellan Midstream Partners LP, owns the BridgeTex Pipeline, a 300,000-b/d crude oil pipeline extending from the Permian basin to the Houston Gulf Coast. The BridgeTex Pipeline began service in September (OGJ Online, Sept. 23, 2014).
The sale of Oxy’s interest in BridgeTex includes two transactions: PAA will purchase for $1.075 billion Oxy’s interest in the 400-mile northern leg of the BridgeTex pipeline which extends from the Permian basin to East Houston; and Magellan will acquire Oxy’s interest in the 40-mile, 24-in. southern leg of the BridgeTex pipeline from Houston to Texas City for $75 million.