LyondellBasell to buy BP's olefins pipeline system in Houston

Petrochemicals giant LyondellBasell today signed an agreement to purchase approximately 200 miles (322 km) of olefins pipeline system near Houston from BP.

The companies did not disclose the value of the deal,

The acquisition, being made through its subsidiary Equistar Chemicals LP, also includes a natural gas liquids (NGL) feedstock supply line into Channelview, Texas, LyondellBasell said in a release.

The pipelines and metering stations comprise a Houston area olefins distribution system transporting ethylene and propylene production from Channelview, to Equistar's storage terminal at Mont Belvieu, also in Texas and facilities in Deer Park, La Porte and the Bayport Industrial District in Pasadena, Texas.

Equistar currently holds a long-term lease for use of the pipelines, which are owned and operated by BP. Acquisition of the pipelines will provide Equistar with a secure, cost-effective transportation system for its ethylene and propylene production in the Houston area, the release said.

Equistar's pipeline group currently operates and maintains approximately 1,200 miles (1,931 km) of pipeline in Texas, and transports approximately 20 billion pounds (9.08 billion kg) of product and 80 million barrels of feedstock annually.