An affiliate of Enterprise Products Partners LP has agreed to acquire the midstream business and assets of Azure Midstream Partners LP and its operating subsidiaries in East Texas and North Louisiana.
The agreement was the result of Azure’s bankruptcy auction proceedings, which Enterprise won with a bid price of $189 million. The U.S. Bankruptcy Court for the Southern District of Texas entered an order approving the sale by Azure to Enterprise’s affiliate on Wednesday.
The assets include more than 960 miles of natural gas gathering pipelines, three gas processing facilities with an aggregate capacity of 210 MMcf/d and two 10,000 b/d natural gas liquids (NGL) pipelines.
The assets are in Panola, Harrison, Angelina, Shelby, San Augustine, Sabine, Nacogdoches and Rusk counties, TX, and DeSoto and Caddo parishes, LA. The system serves production from the Haynesville Shale, Bossier, Cotton Valley and Travis Peak formations.
“These assets are very complementary to our East Texas NGL, Texas Intrastate natural gas pipeline, and our Haynesville gathering and Acadian natural gas pipeline systems,” said William Ordemann, executive vice president of Enterprise’s general partner.
Closing could occur as early as April.