Mid Louisiana Gas Transmission, a subsidiary of Midcoast EnergyResources, announced last week that it purchased all of the stockin the Creole Gas Pipeline in southern Louisiana from El PasoEnergy for an undisclosed amount.

The purchase of the 44-mile pipeline, which has a capacity of115,000 Mcf/d and an average throughput of 50,000 Mcf/d, is part ofMidcoast’s on-going effort to increase its presence in theLouisiana transportation market. The pipeline, which is locatednear New Orleans, would serve several large industrial customers,including Entergy Louisiana Inc., Air Products &amp Chemicals,Murphy Oil, Domino Sugar and Mobil Oil’s Chalmette refinery.

“The Creole system is a perfect addition to our growing presencein the south Louisiana industrial area,” said Midcoast PresidentDan Tutcher, adding that it was a “natural fit” with the MidLouisiana Gas system that it acquired in late 1997 and subsequentlyexpanded.

Midcoast acquired the 386-mile Mid Louisiana interstate system,which runs from the Monroe gas field in northern Louisiana to BatonRouge, as part of a merger transaction with Republic Gas Partnerslast November, said Duane Herbst, a Midcoast spokesman.

“We’re in the process of expanding that system, and we’ve madeseveral smaller pipeline acquisitions as part of our expansion” inthe Louisiana region, he noted. “It’s been a big area of focus forus over the last six months or so.” Herbst said Midcoast had noplans to “immediately” connect the Creole and Mid Louisianasystems.

Houston-based Midcoast transports, gathers, processes andmarkets natural gas and other petroleum products through 50company-owned pipelines spanning 1,500 miles in nine states. Susan Parker

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