Midcoast Expands Role in Louisiana Market
Mid Louisiana Gas Transmission, a subsidiary of Midcoast Energy
Resources, announced last week that it purchased all of the stock
in the Creole Gas Pipeline in southern Louisiana from El Paso
Energy for an undisclosed amount.
The purchase of the 44-mile pipeline, which has a capacity of
115,000 Mcf/d and an average throughput of 50,000 Mcf/d, is part of
Midcoast's on-going effort to increase its presence in the
Louisiana transportation market. The pipeline, which is located
near New Orleans, would serve several large industrial customers,
including Entergy Louisiana Inc., Air Products & Chemicals,
Murphy Oil, Domino Sugar and Mobil Oil's Chalmette refinery.
"The Creole system is a perfect addition to our growing presence
in the south Louisiana industrial area," said Midcoast President
Dan Tutcher, adding that it was a "natural fit" with the Mid
Louisiana Gas system that it acquired in late 1997 and subsequently
Midcoast acquired the 386-mile Mid Louisiana interstate system,
which runs from the Monroe gas field in northern Louisiana to Baton
Rouge, as part of a merger transaction with Republic Gas Partners
last November, said Duane Herbst, a Midcoast spokesman.
"We're in the process of expanding that system, and we've made
several smaller pipeline acquisitions as part of our expansion" in
the Louisiana region, he noted. "It's been a big area of focus for
us over the last six months or so." Herbst said Midcoast had no
plans to "immediately" connect the Creole and Mid Louisiana
Houston-based Midcoast transports, gathers, processes and
markets natural gas and other petroleum products through 50
company-owned pipelines spanning 1,500 miles in nine states.
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