GASES business BOC is set to buy the industrial gases assets of Enron Teesside Operations Limited (ETOL).

The deal involves the acquisition of around 28 miles of pipelines and compression facilities used for the delivery of oxygen and nitrogen directly to large customers on Teesside.

It will extend and strengthen BOC's supply capability for customers on Teesside and consolidate the company's position as the leading supplier of industrial gases in the area.

In return ETOL is taking over the operation of the power station at the centre of the Wilton site, giving a substantial increase in electricity customers.

ETOL was last year hit by the decision of Ineos Chlor Chemicals to close one of its plants on Teesside.

A spokesman for ETOL, said: "The power element of the arrangement is a major step forward for ETOL in its long-term aim to increase sales of electricity from its distribution system.

"It will help to replace all the electricity supply we have lost due to the closure of the Ineos plant later this year."

The deal, while not creating any new jobs, will safeguard more than 530 existing jobs.

Nigel Hunton, managing director of BOC Process Gas Solutions, said: "There are many benefits to this deal. The pipeline system directly complements our existing operations and brings BOC closer to its customers.

"It also demonstrates BOC's commitment to continuous improvement of our facilities on Teesside."

He added: "The investment also improves our position in the event of additional growth opportunities - particularly important given the pre-eminent position of Teesside as a world class manufacturing facility and one which is seeking to attract further investment from major players in the chemicals market."

Paul Gavens, chief executive of ETOL, said: "This really is a win-win situation for both companies. We expect the power deal to increase ETOL's power sales by around 40 per cent.

"Together these arrangements allow both ourselves and BOC to focus on those parts of our business which are our strategic strengths.

"ETOL has invested heavily in its power assets at Wilton International in the last three years and anticipates substantial business growth into the future."

ETOL was formed in 1999 out of the former ICI Teesside Utilities and Services Business.

It is 50 per cent owned by collapsed US energy giant Enron, but operates as a stand alone business, providing a range of services to major chemical companies, including Huntsman, DuPont and Dow.