San Francisco: In a deal between two Houston-based firms announced on Thursday midstream energy specialist Genesis Energy is buying Enterprise Products Partners’ offshore pipelines in the Gulf of Mexico for $1.5bn.
Among the assets Genesis is acquiring are 1,100 miles of crude oil pipeline, 1,200 miles of natural gas pipeline and interest in six offshore hub platforms.
Genesis has a fleet of barges and provides a handful of other midstream services. It already has about 750 miles of onshore pipelines and interests in 1,200 miles of offshore pipelines so the deal hugely increases its capacity in those areas.
Enterprise says its motive for selling is to fund its own previously announced Eagle Ford shale acquisition plans without having to sell more of its equity.
The deal should close this month and will see the transfer of employees in Enterprise’s offshore business to Genesis.