Regency Energy Partners LP on Tuesday completed its previously announced $85 million acquisition of Nexus Gas Holdings LLC, a midstream provider of natural gas gathering, dehydration and compression services.

“Regency is pleased to have closed the Nexus acquisition, which will expand our reach in one of the most prolific areas of North Louisiana and East Texas,” said Regency CEO James W. Hunt.

With this acquisition (see Daily GPI, Feb. 26), Regency has also acquired Nexus’ agreement to purchase 136 miles of pipeline from Southern Natural Gas Co. (SNG). Before Regency can purchase the pipeline from SNG, the Federal Energy Regulatory Commission must approve the abandonment and certain closing conditions must be met. If the transaction closes under the currently anticipated conditions, Regency will purchase the pipeline from SNG and make an additional payment to Nexus.

Regency funded the Nexus acquisition using borrowings under its revolving credit facility.

Regency has been on an acquisition streak over the last few years. A deal late last year in which it acquired FrontStreet Hugoton LLC and FrontStreet Energyone LLC from GE Financial Services for $139 million expanded Regency’s presence in Kansas and complemented its Midcontinent gathering assets (see Daily GPI, Dec. 28, 2007). Regency acquired Pueblo Midstream Gas Corp. earlier last year (see Daily GPI, April 4, 2007).

Regency’s general partner is majority-owned by affiliates of GE Energy Financial Services, a unit of GE (see Daily GPI, June 20, 2007).

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