Regency Gas Services LLC of Dallas, which has picked up midstream assets from El Paso and Duke Energy in the last year, announced Monday its affiliate has completed the purchase of natural gas treating assets in Louisiana and Texas from Cardinal Gas Services for approximately $3.4 million.
Regency Gas Treating L.P. purchased the facilities to treat gas to remove contaminants and liquid hydrocarbons with an effective date of April 1, 2004.
Just last month Regency acquired gathering, processing and treating assets in West Texas from Duke Energy Field Services LP with a transaction value of approximately $62 million. The facilities, known as the Waha system, consist of more than 600 miles of pipeline, 40,000 horsepower of compression and gas processing and treating capacities of more than 125 MMcf/d.
Regency was formed in June 2003 with equity backing from Charlesbank Capital Partners. As its inaugural acquisition, Regency purchased gas gathering, processing, treating and transmission pipeline assets from El Paso Field Services for $120 million. These assets are principally located in Kansas, Oklahoma, and North Louisiana.
The latest purchase “enables Regency to provide equipment leasing and other treating services to expand its services to oil and gas producers,” said James Bryant, Regency president.
The mid-stream natural gas service company now has combined assets consisting of approximately 3,000 miles of pipelines, 115,000 hp of compression and five gas processing plants with aggregate processing capacity of 330 MMcf/d. Total gas throughput for the company is now approximately 450 MMcf/d.
Regency was set up with David Biegler, who previously served as vice chairman of TXU and chairman of ENSERCH, serving as Regency chairman. Bryant formerly was CEO of Endevco, a pipeline company that at one time owned the El Paso Louisiana assets that Regency purchased.
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