US based Buckeye Partners has signed an agreement to sell its 20% interest in West Texas LPG Pipeline Limited (WTLPG) to affiliates of Atlas Pipeline Partners for $85m.

WTLPG owns a 2,295-mile common-carrier pipeline system that transports NGLs from New Mexico and Texas to Mont Belvieu for fractionation.

The transaction is expected to close in the second quarter of this year, subject to customary closing conditions.

Chevron Pipeline Co owns the remaining 80% interest and is the operator of WTLPG.

Buckeye chairman and CEO Forrest Wylie said that the proceeds from the sale will be redeployed to the company’s core operating assets, and will be available to fund a portion of its internal growth capital projects planned for 2011.