2011-06-15-2011-06-07

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

LyondellBasell (NYSE: LYB) has signed an agreement to purchase approximately 200 miles of pipeline near Houston from BP by its Equistar Chemicals LP subsidiary.

The pipelines and metering stations comprise a Houston area olefins distribution system transporting ethylene and propylene production from Channelview, Texas to Equistar's storage terminal at Mont Belvieu, Texas and facilities in Deer Park, La Porte and the Bayport Industrial District in Pasadena, Texas. The purchase also includes a natural gas liquids (NGL) feedstock supply line into Channelview.

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

Equistar's pipeline group currently operates and maintains approximately 1,200 miles of pipeline in Texas, and transports approximately 20 billion pounds of product and 80 million barrels of feedstock annually. An undetermined number of BP pipeline employees will join Equistar with the purchase.

The transaction is subject to government review and is expected to close in August. Terms of the transaction were not disclosed.