Crestwood Midstream Partners LP has agreed to acquire Tristate Sabine LLC from affiliates of Energy Spectrum Capital, Zwolle Pipeline LLC and Tristate management for $65 million in cash at closing plus a deferred payment of $8 million one year later. The entities to be acquired own and operate 52 miles of gas gathering pipelines in Sabine Parish, LA, known as the Tristate System, which serves Haynesville and Bossier shale production from the Toledo Bend South field area for delivery to Gulf South Pipeline and Tennessee Gas Pipeline. Contracts dedicate about 20,000 acres under long-term, fixed-fee arrangements, and capacity is being expanded to 100 MMcf/d for gathering and 80 MMcf/d for treating. The acquisition is expected to close on Nov. 1 and will be financed with borrowings under Crestwood’s credit facility.
Midstream
Articles from Midstream
Analysts: Eagle Ford to Rival Bakken for Tight Oil
The outlook for oil output from the Eagle Ford Shale of South Texas is strong enough to cause analysts at Wood Mackenzie to predict that it will rival the Bakken Shale by 2015 as North America’s leading tight-oil producer.
MarkWest, Sunoco Moving Forward with Marcellus Pipeline Plans
An open season for Project Mariner West, a proposed pipeline to deliver ethane from MarkWest Liberty Midstream & Resources LLC’s Houston, PA, processing and fractionation complex in the Marcellus Shale to Sarnia, ON, has received binding commitments that enable the project to proceed as designed with an initial capacity to transport approximately 50,000 b/d and the ability to expand to support higher volumes as needed, according to Sunoco Logistics Partners LP.
Industry Briefs
Atlas Pipeline Partners LP (APL) has signed agreements with DCP NGL Services LLC (DCP), a subsidiary of DCP Midstream LLC, to sell its natural gas liquids (NGL) production from each of APL’s processing facilities in Oklahoma and Texas. The agreements are based on Mont Belvieu NGL pricing and each has a term of 15 years, which will become effective at various times upon expiration of APL’s existing NGL sales agreements, the company said. The agreements provide long-term support for APL’s previously announced expansions at its WestTX, WestOK and Velma systems (see Daily GPI, May 16). The arrangements also allow for the sale of additional NGLs from the West Texas plants on an interim basis.
Industry Briefs
Blue Dolphin Energy Co. said it will purchase the Nixon Crude Processing Facility from a privately held firm in a stock deal, the value of which was not disclosed. The facility has a processing capacity of 15,000 b/d along with storage capacity of 295,000 b/d, and is located in the Eagle Ford Shale at Nixon, TX, on 56 acres between Gonzales and Wilson counties. The plant is in the final phase of a refurbishment project and plans to restart operations during 4Q2011.
Petrohawk Buyout to Feather Kinder Morgan Nest, CEO Says
Kinder Morgan Energy Partners LP (KMP) midstream assets in the Eagle Ford and Haynesville shales are positioned to see an uplift in throughput thanks to the pending acquisition of Petrohawk Energy Corp. by BHP Billiton Ltd. and the expectation that the latter will be spending a lot more in the plays, CEO Rich Kinder told financial analysts Wednesday.
Recent Deal Makes Kinder a Midstream ‘Hawk’
Kinder Morgan Energy Partners LP (KMP) midstream assets in the Eagle Ford and Haynesville shales are positioned to see an uplift in throughput thanks to the pending acquisition of Petrohawk Energy Corp. by BHP Billiton Ltd. and the expectation that the latter will be spending a lot more in the plays, CEO Rich Kinder told financial analysts Wednesday.
More Rich Gas Gathering Planned for South Texas
Meritage Midstream Services LLC plans to build a rich gas gathering system in Webb County, TX, with Escondido Resources II LLC as the anchor customer.
Southcross Plans New Eagle Ford Processing
Southcross Energy plans to construct a 200 MMcf/d gas processing plant in Refugio County, TX, to handle liquids-rich production from the Eagle Ford Shale, the Dallas-based company said Tuesday.
Appalachian Midstream to Expand Bear Print System
Appalachian Midstream Partners (AMP) will use a $176 million equity commitment from Avista Capital Partners to develop and expand its Bear Print system to serve Marcellus Shale gas production in north central Pennsylvania, the Columbus, OH-based company said.
