Crosstex Snags Tejas Line from Coral
Crosstex Energy Services announced it has purchased Tejas Gas
Transmission LLC, an indirect subsidiary of Coral Energy, for an
undisclosed amount. Tejas owns the 484-mile Gulf Coast Pipeline
System, which transports about 120 MMcf/d of gas, and includes a
supply and marketing team, called G C Marketing Co.
"This transaction is part of an aggressive growth strategy being
pursued with new funding received in May of this year from Yorktown
Energy Partners IV LP, a $400 million New York based private equity
energy fund. It is a big step in our plan to become a major
midstream pipeline company," said Crosstex CEO Barry Davis.
The Gulf Coast pipeline system has a mainline running from
Refugio County in South Texas northward along the coast to the
Brazos River in Fort Bend County. It also has two supply laterals,
which gather gas from 500 wellheads and six processing plants, and
three other laterals that deliver gas directly to large industrial
and utility consumers along the coast. It also interconnects with
multiple other pipelines in the region.
"The purchase of the Gulf Coast System provides Crosstex with a
large footprint on the Gulf Coast of Texas," said Crosstex
Executive Vice President Jim Wales. "Crosstex will provide all the
services necessary to maintain and strengthen the long established
relationships with burner-tip customers. In addition, we will
enhance our producer relationships by expanding the upstream/field
services we provide to include gathering, compression, treating and
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