Midcoast Energy Resources Inc. agreed to buy the Gloria pipelinesystem in southeastern Louisiana and the Bruni gathering system insouth Texas for nearly $7.53 million from Koch Gateway Pipeline Co.

The Gloria system is about 133 miles of mainly 12- and 16-inchpipeline with a 1,650 horsepower compressor station, and includes51 miles of gathering pipeline and 82 miles of transmissionpipeline in St. Bernard, Plaquemines, Jefferson and Lafourcheparishes, LA. The system gathers gas from seven producing fieldsand directly supplies gas to an industrial customer and a localdistribution company in the area. The average daily throughput onthe system is about 23,250 MMcf/d.

The Bruni system, in Duval, Jim Wells, Live Oak and San Patriciocounties, TX, is composed of 142 miles of mainly 14- and 18-inchpipeline. The system gathers gas from producing wells in the regionand provides gas supply to the local distribution company for thecities of Mathis, Orange Grove, Agua Dulce and San Diego, TX.

Both pipelines are presently part of Koch’s interstate systemand the Federal Energy Regulatory Commission must approve thesystems’ abandonment from interstate service and sale. Midcoastintends to operate both pipelines as separate intrastate systems.

“The Gloria system further establishes Midcoast in Louisianawhere we have built a strong operating base including themid-Louisiana systems we purchased last year and the Creole systemwe purchased earlier this year,” said Dan Tutcher, Midcoastpresident. “The Bruni system will further solidify Midcoast’spresence in south Texas and serve to complement our existing assetbase there, which already includes 15 systems with over 145 milesof gathering and end-user pipeline.”

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.