Atlas Pipeline partners with Chevron on NGL pipeline, buys interest from Buckeye for $85MM

Source: Atlas Pipeline Partners

Atlas Pipeline Partners, L.P. (NYSE: APL) signed an agreement to partner with Chevron Pipeline Company, an affiliate of Chevron Corporation (NYSE: CVX) through a purchase of a 20 percent interest in West Texas LPG Pipeline Limited Partnership (WTLPG) from Buckeye Partners, L.P. (NYSE: BPL) for $85 million.

WTLPG owns a 2,295-mile common-carrier pipeline system that transports Natural Gas Liquids (NGLs) from New Mexico and Texas to Mont Belvieu for fractionation. Chevron Pipeline Company, which owns the remaining 80 percent interest, is the operator of WTLPG. The transaction is expected to close in the second quarter of 2011, subject to customary closing conditions.

"We are pleased to announce today the partnership with Chevron in WTLPG, which further expands our midstream footprint into the NGL transportation business. This system is strategic to our continuing growth in the Permian basin of West Texas and we anticipate the Partnership will expand opportunities in both the gathering of NGLs as well as the expansion of the WTLPG pipeline system," said Eugene Dubay, Chief Executive Officer of Atlas Pipeline.

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