BP to sell its Texas gas processing plants for $227.5m

The assets for sale have an associated gathering system of around 2,500 miles of pipelines.

New Statesman
Fuel for thought: in 2011, BP produced over 1,800 mmcf/d natural gas in the US. Credit: Getty Images

BP America Production Company has agreed to sell its Sunray and Hemphill gas processing plants in the Texas Panhandle to Eagle Rock Energy Partners, for a cash consideration of $227.5m. The company will retain its natural gas producing assets in the area.

The plants have a combined processing capacity of approximately 220 million cubic feet of gas per day (mmcf/d) and an associated gathering system of around 2,500 miles of pipelines. 

The transaction is expected to close in the fourth quarter of 2012, subject to regulatory approvals and customary closing conditions.

BP is the second-largest producer of oil and gas in the US. In 2011, it produced over 1,800 mmcf/d natural gas in the country.