Regency Energy Partners LP has acquired Pueblo Midstream Gas Corp. from Bear Cub Investments LLC for $55 million ($35 million in cash and approximately 750,000 Regency common units).
Pueblo's primary assets include the Fashing Plant and related gathering system located in Atascosa and Karnes counties, TX. The Fashing system is composed of a 75 MMcf/d gas processing and treating facility, 33 miles of gathering pipelines and approximately 6,000 horsepower of compression. The facility consists of amine treating, dehydration and sulfur recovery units and a refrigerated lean-oil gas processing plant in South Texas.
"With the Pueblo acquisition, we will begin construction on a new 20-mile pipeline, which will connect Fashing to our Tilden Plant in South Texas, generating additional synergies," said Regency CEO James W. Hunt. "The addition of the Fashing system, coupled with the pipeline expansion project, will extend our natural gas presence and consolidate our position in sour gas treating in South Texas."
In July Regency expanded its footprint in South and East Texas with the purchase of San Antonio-based TexStar Field Services LP for $350 million (see Daily GPI, July 14, 2006). The TexStar System added 1,476 miles of gathering pipelines, more than 36,800 horsepower of compression and four processing and treating facilities to Regency's asset base.
Regency is a "growth-oriented" midstream partnership that gathers, treats, compresses, processes, transports and markets natural gas, and transports and markets natural gas liquids.
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