IntercontinentalExchange, Inc. today announced that it has entered into a definitive agreement to acquire ChemConnect, Inc.’s commodity trading business.

ChemConnect is an electronic marketplace for the US$150 billion U.S. natural gas liquids and chemicals markets. Its NGL markets include products such as propane and ethane, and its chemicals business includes commodities such as ethylene, propylene and benzene. NGL prices are correlated with natural gas and crude oil prices, making these products a natural extension to those products currently offered on the ICE platform, the firm says.

Houston-based ChemConnect will transition its electronic markets to the ICE electronic trading platform. The all-cash transaction is expected to be completed by the middle of July, and the terms of the transaction have not been disclosed.

“This strategic and accretive acquisition builds on ICE’s commitment to serving the physical OTC energy markets by increasing access and transparency through electronic trading,” said Charles Vice, ICE president and chief operating officer, in a news release. “We are pleased to welcome the ChemConnect team and their diverse customer base. The acquisition of the leading electronic physical NGL and chemicals trading platform is an excellent fit with our leadership in the U.S. physical gas and power markets, as well as our upcoming launch of the Platts Window on ICE for the global physical oil markets.”