Enterprise acquires Azure natural gas gathering system
HOUSTON -- Enterprise Products Partners L.P. announced that one of its affiliates has executed a definitive agreement to acquire the midstream business and assets of Azure Midstream Partners, L.P. and its operating subsidiaries in East Texas and North Louisiana.
|Photo Courtesy of Enterprise Products Partners L.P.
The agreement was the result of Azure’s bankruptcy auction proceedings, which Enterprise won with a bid price of $189 million. The United States Bankruptcy Court for the Southern District of Texas entered an order approving the sale by Azure to Enterprise’s affiliate on March 15, 2017.
The assets include over 960 miles of natural gas gathering pipelines, three natural gas processing facilities with an aggregate capacity of approximately 210 MM ft3 per day and two 10,000 bpd NGL pipelines. These assets are located in Panola, Harrison, Angelina, Shelby, San Augustine, Sabine, Nacogdoches and Rusk counties, Texas and DeSoto and Caddo parishes, Louisiana. The system serves production from the Haynesville shale, Bossier, Cotton Valley and Travis Peak formations.
“We are pleased to acquire these assets,” said William Ordemann, executive vice president of Enterprise’s general partner. “These assets are very complementary to our East Texas NGL, Texas Intrastate natural gas pipeline, and our Haynesville gathering and Acadian natural gas pipeline systems. This transaction is expected to be immediately accretive to our distributable cash flow per unit.”
This transaction is subject to customary regulatory approval and closing conditions. Enterprise expects to close the transaction as soon as practicable after such regulatory approvals and closing conditions have been satisfied, which is expected to occur as early as April, 2017.
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At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
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