Azure Midstream Holdings LLC has completed its purchase of TGGT Holdings LLC from EXCO Resources Inc. and BG Group PLC for $910 million a month after the companies reported entering into a definitive agreement (OGJ Online, Oct. 18, 2013).
In the transaction, Energy Spectrum Partners VI LP, a group of co-investors affiliated with Energy Spectrum and an affiliate of Tenaska Capital Management LLC, contributed cash for an ownership stake in Azure. The East Texas Gathering System, an asset managed by Tenaska Capital, is being contributed for an additional ownership interest. EXCO and BG will collectively own 7% of Azure.
Azure will operate more than 1,300 miles of gathering pipelines transporting natural gas from North Louisiana and East Texas supply basins to more than 20 major intrastate and interstate pipelines in the region. The systems are currently gathering and delivering 1.3 bcfd, with a combined delivery capacity of 4 bcfd, including 2.7 bcfd of treating capacity.
Tenaska Capital stated that the consolidation of the Haynesville shale will give the producers on its ETG and TGGT systems more market options for gas and more potential for on-system processing as the company completes its Fairway processing plant.