ONEOK Inc. has agreed to acquire a system of natural gas liquids (NGL) pipelines from Houston-based midstream company Easton Energy for approximately $280 million, subject to customary adjustments.

According to the company’s press release, the deal involves roughly 450 miles of pipelines in key Gulf Coast market centers for NGLs, refined products, and crude oil. The pipelines currently transport a variety of liquid products for existing customers.

ONEOK plans to integrate the acquired assets with its existing NGL infrastructure in Mont Belvieu, Texas, and its Houston refined products and crude oil infrastructure, aiming to capture commercial synergies.

“This strategic acquisition provides the most direct pipeline connectivity within the critical supply and demand hubs for our NGLs, refined products, and crude oil assets in the Gulf Coast,” said Pierce H. Norton II, ONEOK president and CEO. 

“We anticipate this acquisition will expedite our ability to capture commercial synergies from our recent Magellan acquisition and drive future earnings growth,” he added.

The transaction is expected to close by mid-2024.