With its energy trading unit now sold, Entergy-Koch LP retained Lehman Brothers last week to coordinate offers to sell subsidiary Gulf South Pipeline Co. LP. The Houston-based pipeline is jointly owned by Entergy Corp. and Koch Industries Inc., and is part of the companies’ overall plan to disband their partnership.

Gulf South owns and operates an 8,000-mile natural gas pipeline system and associated storage facilities servicing gas transportation and storage needs throughout the Gulf Coast. The pipe, which extends from South Texas through the Gulf Coast region into Florida, transports 2.0 Bcf/d, includes 32 compressor stations and more than 100 major interconnects. The company’s Bistineau, LA and Jackson, MS storage facilities provide a total working capacity of 68 Bcf.

“Our long term strategy for Entergy-Koch has included considering options that would maximize the potential value of our trading and transportation businesses,” said CEO Kyle Vann. “One of those options is determining whether Gulf South would have greater value for an owner with a different asset portfolio, business plan or financial structure.”

Earlier this month, Entergy-Koch agreed to sell its energy trading operations to Merrill Lynch & Co. for an undisclosed amount (see NGI, Sept. 6). The companies announced their intentions to sell off the trading unit and Gulf South in June following a “broad review” (see NGI, June 14).

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