Newly formed gas midstream company Regency Gas Services has acquired approximately 2,300 miles of natural gas gathering lines and four processing plants as well as pipeline assets from El Paso Corp. for $120 million.

The assets are located in Louisiana, Kansas, Oklahoma, Texas and Colorado, and the four acquired plants have an aggregate capacity of 205 MMcf/d, which are supplied by 1,900 active wells that have an aggregate throughput of 300 MMcf/d.

Regency, based in Dallas, was formed by Charlesbank Capital Partners LLC, which provided equity for the transaction. And a group of banks led by Wells Fargo provided senior debt for the El Paso transaction.

Regency will be chaired by David Biegler, who previously served as vice chairman of TXU and chairman of ENSERCH. Jim Bryant who was named president, is the former CEO of Endevco, a pipeline company that at one time owned the El Paso Louisiana assets Regency purchased. Regency’s management team also includes Mack Lawrence, executive vice president, Marketing, formerly of ENSERCH, and Doug Dormer, executive vice president, Finance, formerly of Energy Transfer Co. Mike Hunter serves as a Regency director and was formerly president of Lone Star Pipeline.

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