Atlas Pipeline Partners, L.P. signed an agreement to partner with Chevron Pipeline Co. for purchase of a 20% interest in West Texas LPG Pipeline Limited Partnership from Buckeye Partners, L.P. for $85 million.
WTLPG owns a 2,295-mile common-carrier pipeline system that transports natural gas liquids from New Mexico and Texas to Mont Belvieu for fractionation. Chevron Pipeline Co., which owns the remaining 80%, is operator of WTLPG.
“The partnership with Chevron in WTLPG 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, CEO of the Partnership.