Enterprise Products to buy Eagle Ford pipeline for $2.15 billion

REUTERS - Enterprise Products Partners LP said it would buy pipeline and processing assets in the Eagle Ford shale in Texas from Pioneer Natural Resources Co and Reliance Industries Ltd for $2.15 billion.

Pioneer Natural and Reliance have agreed to use the pipeline for 20 years and to provide a minimum volume requirement for the first seven years, Enterprise Products said.

EFS Midstream, formed by Pioneer Natural and Reliance in June 2010, includes about 460 miles of natural gas pipelines, 10 central plants and 780 million cubic feet per day of natural gas treating capacity.

Enterprise Products will pay the first installment of $1.15 billion at closing and the rest no later than the first anniversary of the closing date. The deal is expected to close in the third quarter.

Pioneer, which owns 50.1 percent stake in the business, said it expects the deal to result in pretax gain of more than $725 million in the third quarter.

(Reporting by Sneha Banerjee in Bengaluru; Editing by Don Sebastian)