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

By purchasing SIGCO, Midcoast gained ownership of 15 shortdelivery systems in Louisiana. These systems provide gas to threefood processing plants, seven asphalt plants and the city ofLogansport, 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 strongpresence in the Gulf Coast region,” Dan Tutcher, CEO ofHouston-based Midcoast said, pointing to synergies and “thepossibility of additional service to several already identifiedprospects.”

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

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