Midcoast Gobbles Up a Gulf Coast Distributor
In an attempt to expand its Gulf Coast influence, Midcoast
Energy Resources Inc. purchased Southern Industrial Gas Corp.
(SIGCO), a Gulf Coast distributor, Tuesday. Terms of the
transaction were not disclosed.
By purchasing SIGCO, Midcoast gained ownership of 15 short
delivery systems in Louisiana. These systems provide gas to three
food processing plants, seven asphalt plants and the city of
Logansport, LA. Combined, these systems transport 1.1 Bcf annually.
Midcoast also gained access to SIGCO's markets in Texas,
Mississippi and North Carolina.
"The SIGCO assets are a perfect complement to our already strong
presence in the Gulf Coast region," Dan Tutcher, CEO of
Houston-based Midcoast said, pointing to synergies and "the
possibility of additional service to several already identified
"The Texas to Alabama stretch is our core area," said Duane
Herbst, a Midcoast spokesman. The company has 1,450 miles of
onshore pipeline systems in Texas and Louisiana and another 100
miles of offshore systems. Overall, Midcoast transports, gathers,
processes and markets natural gas and other petroleum products
through approximately 60 company-owned pipelines covering 2,500
miles in nine states, the Gulf of Mexico and Canada.
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