Midcoast Buying Koch Pipes in Texas, Louisiana
Midcoast Energy Resources has agreed to buy the Gloria pipeline
system in southeastern Louisiana and the Bruni gathering system in
South Texas for nearly $7.53 million from Koch Gateway Pipeline.
The Gloria system is about 133 miles of mainly 12- and 16-inch
pipeline with a 1,650 hp compressor station, and includes 51 miles
of gathering pipeline and 82 miles of transmission pipeline in St.
Bernard, Plaquemines, Jefferson and Lafourche parishes, LA. The
system gathers gas from seven producing fields and directly
supplies gas to an industrial customer and a local distribution
company in the area. The daily throughput on the system averages
The Bruni system, in Duval, Jim Wells, Live Oak and San Patricio
counties, TX, is composed of 142 miles of mainly 14- and 18-inch
pipeline. The system gathers gas from producing wells in the region
and provides gas supply to the local distribution company for the
cities of Mathis, Orange Grove, Agua Dulce and San Diego, TX.
Both pipelines are presently part of Koch's interstate system
and FERC must approve the systems' abandonment from interstate
service and sale. Midcoast intends to operate both pipelines as
separate intrastate systems.
"The Gloria system further establishes Midcoast in Louisiana
where we have built a strong operating base including the
mid-Louisiana systems we purchased last year and the Creole system
we purchased earlier this year," said Dan Tutcher, Midcoast
president. "The Bruni system will further solidify Midcoast's
presence in south Texas and serve to complement our existing asset
base there, which already includes 15 systems with over 145 miles
of gathering and end-user pipeline."
In October 1997, Midcoast acquired Republic Gas Partners LLC,
owner of the Mid Louisiana Gas Co. (MIDLA), Mid Louisiana Gas
Transportation Co., and Mid Louisiana Marketing Co. MIDLA owns a
386-mile, 22-inch interstate pipeline running from a gas field in
Monroe, LA, south through Mississippi to Baton Rouge, LA. The
system includes two compressor stations and has throughput capacity
of 200 MMcf/d. MIDLA serves Entergy Gulf States, the LDC for Baton
Rouge; Mississippi Valley Gas Co., the LDC for Natchez, MS;
International Paper's facility near Natchez; and Exxon's Baton
In July, Midcoast's Mid Louisiana Gas Transmission Co.
subsidiary bought the Creole Pipeline Corp. from El Paso Energy
Corp. Creole owns and operates a 44-mile pipeline near New Orleans,
which has capacity of 115 MMcf/d and an average throughput of 50
MMcf/d serving several large industrial customers, including
Entergy Louisiana, Domino Sugar, and Mobil's Chalmette refinery.
Duane Herbst, Midcoast vice president of corporate affairs, said
the company will be integrating its most recent acquisition with
Joe Fisher, Houston