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Crosstex Snags Tejas Line from Coral

Crosstex Snags Tejas Line from Coral

Crosstex Energy Services announced it has purchased Tejas Gas Transmission LLC, an indirect subsidiary of Coral Energy, for an undisclosed amount. Tejas owns the 484-mile Gulf Coast Pipeline System, which transports about 120 MMcf/d of gas, and includes a supply and marketing team, called G C Marketing Co.

"This transaction is part of an aggressive growth strategy being pursued with new funding received in May of this year from Yorktown Energy Partners IV LP, a $400 million New York based private equity energy fund. It is a big step in our plan to become a major midstream pipeline company," said Crosstex CEO Barry Davis.

The Gulf Coast pipeline system has a mainline running from Refugio County in South Texas northward along the coast to the Brazos River in Fort Bend County. It also has two supply laterals, which gather gas from 500 wellheads and six processing plants, and three other laterals that deliver gas directly to large industrial and utility consumers along the coast. It also interconnects with multiple other pipelines in the region.

"The purchase of the Gulf Coast System provides Crosstex with a large footprint on the Gulf Coast of Texas," said Crosstex Executive Vice President Jim Wales. "Crosstex will provide all the services necessary to maintain and strengthen the long established relationships with burner-tip customers. In addition, we will enhance our producer relationships by expanding the upstream/field services we provide to include gathering, compression, treating and processing."

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