A fund managed by New York-based Basalt Infrastructure Partners II GP Ltd. has agreed to acquire Houston-based Third Coast Midstream LLC’s natural gas transmission business for an undisclosed amount.
Third Coast’s seven natural gas laterals span roughly 550 miles with a combined capacity of more than 1.6 million Dth/d. The laterals are connected to eight pipelines that feed supply to consumers in Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
“This investment represents a rare opportunity to invest in a portfolio of demand-driven, regulated 'last-mile' natural gas pipelines serving utilities and other key end-user customers in the southeastern United States,” said Basalt partner David Greenblatt. “The business is strategically positioned to capture continued industrial growth in the region.”
Third Coast, formerly American Midstream Partners LP, was taken private by ArcLight Capital Partners LLC in July. American Midstream had planned to merge with Southcross Energy Partners LP in 2018 before the agreement was terminated. Southcross sought bankruptcy protection in April.
“The sale is a further step in Third Coast's strategic repositioning to focus on its core Gulf of Mexico infrastructure platform," said CEO Matt Rowland.
Third Coast has stakes in roughly 5,100 miles of interstate and intrastate pipelines, gas processing plants, fractionation facilities and an offshore semi-submersible floating production system with nameplate processing capacity of 90,000 b/d of crude oil and 220 MMcf/d of natural gas.