GE Commercial Finance Energy Financial Services, Stamford, Conn., and Caisse de depot et placement du Quebec of Montreal, Canada’s largest institutional investor, agreed to buy the Southern Star natural gas pipeline system from AIG Highstar Capital for $362 million.
In other recent company news:
• Chevron Corp. has increased its equity ownership to 100% in Bridgeline Holdings LP (BLH), which operates an intrastate gas system in southern Louisiana along the Mississippi River.
• TEPPCO Partners LP has acquired from Texas Genco LLC interests in companies that own a 90-mile products pipeline system and 5.8 million bbl of storage capacity in the Houston-Texas City, Tex., area. The transaction value is $62 million.
Southern Star line
In addition to the purchase price for Southern Star, GE and Caisse de depot et placement du Quebec agreed to assume $476 million in debt and preferred stock.
The sale, subject to regulatory approvals, is expected to close within the third quarter. Southern Star’s management will continue operating the pipeline from Owensboro, Ky.
Southern Star is a regulated interstate pipeline spanning more than 6,000 miles in Kansas, Oklahoma, Missouri, Wyoming, Nebraska, Colorado, and Texas. The system includes 39 compressor stations and eight storage fields.
GE’s Energy Financial Services acquired 2% of the equity of Southern Star in 2003. Upon closing of the latest transaction, GE’s Energy Financial Services will hold 60% interest, and Caisse de depot et placement du Quebec will hold 40% interest.
Chevron-Bridgeline
Financial details for Chevron’s BLH deal were not disclosed.
Chevron acquired the additional 40% interest in the BLH Ltd. partnership from an affiliate ofTarga Resources Inc. BLH was formed in 2000 by Chevron (60%) and Targa’s predecessor (40%). Targa acquired its ownership in BLH in late 2004.
BLH manages and operates an integrated intrastate natural gas pipeline and storage system, consisting of more than 1,000 miles of pipeline and 12 bcf of natural gas storage capacity, and manages marketing, supply, and transportation functions.
TEPPCO’s products line
TEPPCO will integrate the acquired system with its existing system, replacing a 10-in., 70,000 b/d pipeline from Texas City to Baytown, Tex., with an 18-in., 180,000 b/d pipeline.
The smaller pipeline and an 8-in. pipeline at the Houston Ship Channel will become available for alternative service. ✦
