NGAS Resources Inc. of Lexington, KY, has closed the sale of its remaining 50% interest in 485 miles of Appalachian gas gathering facilities to Seminole Energy Services (SES) for $22 million. The purchase price was $7.5 million at closing, with the balance of $14.5 million payable by SES in monthly installments through December 2011. The sale completed a mid-July monetization of the initial half interest in the gathering system to a subsidiary of SES for $28 million and was triggered by NGAS’ exercise of put rights that it acquired at that time. “The sale of the remaining interest in this portion of our Appalachian gathering system provides further liquidity to take advantage of our significant development opportunities,” said NGAS CEO William S. Daugherty. “In addition to monetizing this asset and remaining as operator of the gathering system, our firm capacity rights ensure long-term deliverability for our Appalachian gas production.” The gathering system spans parts of southeastern Kentucky, eastern Tennessee and western Virginia, and interconnects with Spectra Energy Partners’ East Tennessee Natural Gas pipeline network. NGAS retained long-term operating rights and firm capacity rights of 30 MMcf/d in the gathering system.
Purchase
Articles from Purchase
Dow Chemical Takes Option on Gas from Hydromethanation
GreatPoint Energy Inc. and Dow Chemical Co. have struck a deal giving Dow the option to purchase natural gas from future GreatPoint facilities that would produce gas from coal through a catalytic process called hydromethanation.
Dow Chemical Takes Option on Gas from Hydromethanation
GreatPoint Energy Inc. and Dow Chemical Co. have struck a deal giving Dow the option to purchase natural gas from future GreatPoint facilities that would produce gas from coal through a catalytic process called hydromethanation.
Regulators Order Maryland Utilities to Buy Winter Gas Now
In an effort to lower heating bills next winter, the Maryland Public Service Commission (PSC) has ordered each of the state’s utilities to purchase 40% of its summer gas injection needs immediately for delivery between now and October.
Regulators Order Maryland Utilities to Buy Winter Gas Now
In an effort to lower heating bills next winter, the Maryland Public Service Commission (PSC) has ordered each of the state’s utilities to purchase 40% of its summer gas injection needs immediately for delivery between now and October.
InterGen Completes Purchase of Northern Mexico Natural Gas Assets
InterGen has completed an $89.2 million purchase in northern Mexico of the Libramiento natural gas compression facility, located adjacent to InterGen’s Compresion Bajio Project, and an associated 40-mile long gas pipeline from Conduit Capital Partners LLC and minority partners including Green Energy and Infraestructura Para Energia.
Industry Brief
El Paso Pipeline Partners LP has completed its purchase of an additional 30% interest in Colorado Interstate Gas Co. (CIG) and an additional 15% stake in Southern Natural Gas Co. from El Paso Corp. The partnership now owns a 40% interest in CIG and a 25% share of Southern Natural. The transaction was financed with $250 million of debt and the issuance of approximately 27.8 million common units. El Paso Pipeline Partners also owns Wyoming Interstate Co., an interstate pipeline that serves the Rocky Mountain region.
Wall Street Woes, Ike Worries and Crude Weakness Create Wild NatGas Futures Ride
Reports of the Lehman Brothers implosion, the purchase of Merrill Lynch, the freefall of the Dow Index and petroleum contract values and concerns over Hurricane Ike damage and shut-ins all added up wide swings for natural gas futures on Monday. After pressing support at $7 in early trade, the prompt-month shot violently higher to a high of $7.840 just after noon EDT before evening out in the end at $7.374, up less than a penny from Friday’s close.
DCP Midstream Partners Grabs Antrim Gathering and Transportation Stake
To diversify its geographic operational area, DCP Midstream Partners LP has agreed to purchase Michigan Pipeline & Processing LLC (MPP), a privately held company engaged in natural gas gathering and treating services for gas produced from the Antrim Shale of northern Michigan and gas transportation within Michigan, for $145 million.
DCP Midstream Partners Grabs Antrim Gathering and Transportation Stake
To diversify its geographic operational area, DCP Midstream Partners LP has agreed to purchase Michigan Pipeline & Processing LLC (MPP), a privately held company engaged in natural gas gathering and treating services for gas produced from the Antrim Shale of northern Michigan and gas transportation within Michigan, for $145 million.
