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TEPPCO Partners, L.P. Completes Sale of Pioneer Natural Gas Processing Plant to Enterprise Products Partners L.P.

Posted on: Monday, 3 April 2006, 09:01 CDT

TEPPCO Partners, L.P. (NYSE:TPP) today announced that its affiliate, Jonah Gas Gathering Company (JGGC), has completed the sale of the Pioneer silica gel natural gas processing plant located near Opal, Wyo., to an affiliate of Enterprise Products Partners L.P. for $38 million. Additionally, as part of the transaction, Enterprise purchased JGGC's rights to process natural gas originating from the Jonah and Pinedale fields located in southwest Wyoming.

"TEPPCO believes that our Jonah Gas Gathering system will benefit from Enterprise's plans to expand Pioneer and build a new cryogenic plant," said Leonard W. Mallett, acting chief executive officer of the general partner of TEPPCO. "We will use the proceeds from the sale of the Pioneer plant for future growth projects, to retire debt or for other partnership purposes."

This transaction was reviewed and approved by the Audit and Conflicts Committee of TEPPCO's board of directors, with consultation from an independent financial advisor.

TEPPCO Partners, L.P. is a publicly traded partnership with an enterprise value of approximately $4 billion, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; owns and operates petrochemical and natural gas liquid pipelines; is engaged in crude oil transportation, storage, gathering and marketing; owns and operates natural gas gathering systems; and owns 50-percent interests in Seaway Crude Pipeline Company, Centennial Pipeline LLC and Mont Belvieu Storage Partners, L.P. and an undivided ownership interest in the Basin Pipeline. Texas Eastern Products Pipeline Company, LLC, an indirect subsidiary of EPCO, Inc., is the general partner of TEPPCO Partners, L.P. For more information, visit TEPPCO's Web site at www.teppco.com.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, market conditions, governmental regulations and factors discussed in TEPPCO Partners, L.P. filings with the Securities and Exchange Commission.

Source: Business Wire

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