HOUSTON, Dec. 2 (UPI) -- The acquisition of a major stake in the Rio Grande natural gas liquids pipeline in Texas provides a direct link to the end user, executives said.
Houston company Enterprise Products Partners announced its subsidiary, Enterprise Products Operation LLC, purchased a 70 percent stake in the Rio Grande pipeline from HEP Navajo Southern, a subsidiary of Holly Energy Partners.
Enterprise said it would serves as the operator, with BP holding the remaining 30 percent stake in the pipeline.
Michael Creel, president and chief executive officer of Enterprise, said the deal made sense for customers and shareholders alike.
"The acquisition is supported by firm transportation contracts and gives us direct access to growing end-user markets for home heating and cooking fuel," he added.
The pipeline carries a mix of propane and butane along a 265-mile route from Odessa, Texas, across the Rio Grande River and into Mexico.
The pipeline has the capacity to carry as much as 25,000 barrels of product per day.
