Crosstex Energy Services announced it has purchased Tejas GasTransmission LLC, an indirect subsidiary of Coral Energy, for anundisclosed amount. Tejas owns the 484-mile Gulf Coast PipelineSystem, which transports about 120 MMcf/d of gas, and includes asupply and marketing team, called G C Marketing Co.

“This transaction is part of an aggressive growth strategy beingpursued with new funding received in May of this year from YorktownEnergy Partners IV LP, a $400 million New York based private equityenergy fund. It is a big step in our plan to become a majormidstream pipeline company,” said Crosstex CEO Barry Davis.

The Gulf Coast pipeline system has a mainline running fromRefugio County in South Texas northward along the coast to theBrazos River in Fort Bend County. It also has two supply laterals,which gather gas from 500 wellheads and six processing plants, andthree other laterals that deliver gas directly to large industrialand utility consumers along the coast. It also interconnects withmultiple other pipelines in the region.

“The purchase of the Gulf Coast System provides Crosstex with alarge footprint on the Gulf Coast of Texas,” said CrosstexExecutive Vice President Jim Wales. “Crosstex will provide all theservices necessary to maintain and strengthen the long establishedrelationships with burner-tip customers. In addition, we willenhance our producer relationships by expanding the upstream/fieldservices we provide to include gathering, compression, treating andprocessing.”

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