High Point Gas Transmission (HPGT) will purchase onshore and offshore natural gas pipeline assets in southeast Louisiana from Southern Natural Gas Co. (SNG), the companies said Friday. Financial terms of the deal, which is expected to close next year, were not disclosed.
Houston-based HPGT, a partnership of an affiliate of ArcLight Capital Partners and High Point Energy (HPE), said it will acquire 621 miles of onshore and offshore pipeline, ranging from four to 26 inches in diameter, in water depths of up to 1,000 feet, including four platforms, about 68 active receipt points and 25 active delivery points, and related pig launching and receiving equipment, machinery, electronic flow measurement and communications equipment, rights of way, easements, permits and line pack.
The assets are in SNG’s supply area south of Toca Compressor Station on its east leg, HPGT said.
“ArcLight and HPE have agreed to contribute certain other related pipeline assets to HPGT and intend to grow the business by partnering with local producers to develop and maintain the infrastructure and producer services needed to grow Gulf Coast oil and gas production, and completing targeted acquisitions and capital projects,” the company said.
SNG posted a notice requesting proposals for the sale of its offshore pipeline assets south of Toca Compressor Station Oct. 8, 2010. Last month the company said it would no longer accept requests for new firm service “related to the points of interest impacted by the proposed sale,” nor would it accept firm receipt point shifts into the area, as part of finalizing a transaction for the assets (see Daily GPI, Aug. 18).
©Copyright 2011Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.
© 2020 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |