Targa Resources Partners (NYSE:NGLS) said Tuesday it will buy its joint venture partner’s 76.8% stake in Venice Energy Services Co., operating on and off the coast of Louisiana, for $167.5 million.

The business, being purchased via cash and borrowings under Targa Resources Partners' senior revolving credit facility, will be acquired from its parent company, Targa Resources.

The Venice, Louisiana-based company, located in Plaquemines Parish along the Gulf Coast, is a natural gas gathering and processing business, including two cryogenic processing trains with a combined 750 million cubic feet per day of capacity, and gas delivery interconnects to Tetco, Gulfsouth and Columbia Gulf.

Venice Gathering System, a wholly owned subsidiary of VESCO, operates an offshore gathering system with approximately 160 miles of pipelines in the Gulf of Mexico.

“The business addition increases the Partnership’s scale and continues to position the Partnership for future growth,” said Targa Resources Partners CEO Rene Joyce.

If the deal closes in the third quarter as expected, the company said it plans to increase its annualized cash dividend by 4 cents, to $2.15 a share, to be declared in October and paid in November.