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Midcoast Gobbles Up a Gulf Coast Distributor

Midcoast Gobbles Up a Gulf Coast Distributor

In an attempt to expand its Gulf Coast influence, Midcoast Energy Resources Inc. purchased Southern Industrial Gas Corp. (SIGCO), a Gulf Coast distributor, Tuesday. Terms of the transaction were not disclosed.

By purchasing SIGCO, Midcoast gained ownership of 15 short delivery systems in Louisiana. These systems provide gas to three food processing plants, seven asphalt plants and the city of Logansport, LA. Combined, these systems transport 1.1 Bcf annually. Midcoast also gained access to SIGCO's markets in Texas, Mississippi and North Carolina.

"The SIGCO assets are a perfect complement to our already strong presence in the Gulf Coast region," Dan Tutcher, CEO of Houston-based Midcoast said, pointing to synergies and "the possibility of additional service to several already identified prospects."

"The Texas to Alabama stretch is our core area," said Duane Herbst, a Midcoast spokesman. The company has 1,450 miles of onshore pipeline systems in Texas and Louisiana and another 100 miles of offshore systems. Overall, Midcoast transports, gathers, processes and markets natural gas and other petroleum products through approximately 60 company-owned pipelines covering 2,500 miles in nine states, the Gulf of Mexico and Canada.

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