Enlink Midstream Signs Definitive Agreement To Acquire Gulf Coast Natural Gas Pipeline Systems

abarrelfullabarrelfull wrote on 05 May 2015 06:20
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09/29/2014

The EnLink Midstream companies, EnLink Midstream Partners, LP (NYSE:ENLK) (the Partnership) and EnLink Midstream, LLC (NYSE:ENLC) (the General Partner) (together “EnLink”), today announced that a subsidiary of the Partnership has signed a definitive agreement with Chevron Pipe Line Company and Chevron Midstream Pipelines LLC to acquire Gulf Coast natural gas pipeline assets including the Bridgeline system (“the natural gas assets”) predominantly located in Southern Louisiana for $235 million, subject to certain adjustments.

The natural gas assets include approximately 1,400 miles of natural gas pipelines spanning from Beaumont, Texas to the Mississippi River corridor and approximately 11 billion cubic feet of working natural gas storage capacity in Southern Louisiana. These natural gas assets, combined with the Partnership’s existing Louisiana assets, will provide EnLink Midstream with tremendous optionality to provide services to Southern Louisiana’s growing industrial, refining and petrochemical marketplace.

“The assets will support our growth strategy by expanding our franchise position in Southern Louisiana, a dynamic and growing market we know well,” said Barry E. Davis , EnLink Midstream President and Chief Executive Officer. “These high-quality assets will complement our existing business and provide us with opportunities to serve a wider range of customers with an expanded range of services.”

The acquisition of these assets will provide strategic advantages:

  • Expands EnLink’s franchise position in Louisiana’s rapidly developing industrial, refining and petrochemical market;
  • Generates system-optimization and operational cost synergies with EnLink’s existing Louisiana natural gas system;
  • Enhances the optionality of EnLink’s combined Louisiana assets; and
  • Provides new service offerings to existing and new customers in the growing Louisiana market.

The assets to be acquired include:

  • Bridgeline System: ~985 miles of natural gas pipelines in Southern Louisiana with a total system capacity of approximately 920,000 million cubic feet per day (MMcf/d);
  • Sabine System: ~150 miles of natural gas pipelines in Texas and Southern Louisiana with a total capacity of approximately 235,000 MMcf/d;
  • Chandeleur System: ~215 miles of offshore Mississippi and Alabama pipelines with a total capacity of approximately 330,000 MMcf/d;
  • Storage Assets: three caverns located in Southern Louisiana with a combined working capacity of approximately 11 billion cubic feet (Bcf), including two near Sorrento, LA with a capacity of approximately 4 Bcf and one inactive cavern near Napoleonville, LA with approximately 7 Bcf of capacity; and
  • Henry Hub: ownership and management of the title tracking services offered at the Henry Hub, the delivery location for NYMEX natural gas futures contracts. Henry Hub is connected to 13 major interstate and intrastate natural gas pipeline and storage systems.

The transaction, which is expected to be completed in the fourth quarter of 2014, is subject to the satisfaction of customary closing conditions contained in the agreement, including receipt of applicable regulatory approvals.


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