By the OGJ Online Staff
HOUSTON, Jan. 31 -- Hurd Investments Ltd., San Antonio, and Webb Duval Pipeline Inc., an affiliate of Copano Energy, Houston, acquired Williams Cos. Inc.'s stakes in the Webb-Duval, Olmitos, and Cinco Compadres pipeline systems for $6 million, said Williams.
The stakes include a 76% interest in Webb-Duval Gatherers, a gathering system of 107 miles of 8 to 16-in. pipelines in Webb and Duval counties in South Texas, and 100% of Olmitos and Cinco Compadres small gathering systems, which comprise 9 and 14 miles respectively of 8-in. pipe in Webb County.
Williams said the three systems comprise 125 miles of line with nominal capacity of 250 MMcfd.
Copano holds 62.5% of the three systems and has become the operator; Hurd holds the rest.
Steve Springer, senior vice-president of Williams' midstream gas and liquids group, said, "This is consistent with our strategy of rationalizing noncore assets. We have already completed a $50 million sale of other south Texas assets to Enbridge this year and traded some gathering interests in the MidContinent to Duke for a larger stake in a Wyoming gas processing plant."
Williams' gathering and processing business is concentrated in Western Canada, Wyoming, the San Juan Basin, and the offshore Gulf of Mexico.
John Eckel, Copano's president and CEO, said, "This purchase fits Copano's strategy of building our portfolio of rich gas gathering assets that can be connected to our Houston Central processing plant through our alliance with Kinder Morgan Texas Pipeline."