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Regency to acquire Zephyr Gas Services

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Aug. 12 -- Regency Energy Partners LP announced Aug. 9 it has agreed to acquire Houston-based field services company Zephyr Gas Services for $185 million. Regency described the acquisition as part of its efforts to expand the natural gas treatment component of its business. The acquired Zephyr assets include equipment in the Haynseville and Eagle Ford shales, areas in which Regency already has gathering, processing, and compression operations.

In addition to gas treatment, Zephyr provides gas cooling, dehydration, Joule-Thompson plant leasing, and sulfur treating services. Regency expects to integrate Zephyr's current management into its contract compression segment.

Regency announced in November 2009 that it would build Phase 2 of its Logansport gathering system expansion in northern Louisiana. The expansion includes gathering lines, a 300 MMcfd gas treatment plant, and 24-in. interconnections to surrounding systems (OGJ Online, Nov. 25, 2009).

Contact Christopher E. Smith at chriss@ogjonline.com.


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