Enterprise Products Buys Controlling Stake in Oiltanking Partners
Photo courtesy of Enterprise
Pipeline company Enterprise Products Partners LP said it has acquired a 64.7 percent limited partner interest in crude storage provider Oiltanking Partners LP as well as a 2 percent general partner interest for $4.41 billion.
The deal will help Enterprise Products build its liquefied petroleum gas export business.
Oiltanking Partners owns marine terminals on the Houston Ship Channel and the Port of Beaumont, Texas with a total of 12 docks and storage capacity for about 24 million barrels of oil and petroleum products on the Gulf Coast.
Enterprise paid $2.21 billion in cash and 54.8 million Enterprise units. The company also paid $228 million to assume notes receivable issued by Oiltanking Partners.
(Reporting by Swetha Gopinath in Bangalore; Editing by Feroze Jamal)
