Enbridge buying Northeast Texas gas gathering, processing facilities

Feb. 5, 2002
Enbridge Inc., Calgary, is buying Sulphur River Gathering LP's gas gathering and processing facilities in Northeast Texas for $178 million.

By the OGJ Online Staff

HOUSTON, Feb. 5 -- Enbridge Inc., Calgary, is buying Sulphur River Gathering LP's gas gathering and processing facilities in Northeast Texas for $178 million.

The facilities, which gather about 210 MMcfd, are contiguous with assets in East Texas recently acquired by Enbridge Energy Partners. The company said the deal increases the portfolio of assets available to Enbridge for potential sale to the partnership in 2002.

Dan Tutcher, Enbridge group vice-president for energy transportation south, said, "This acquisition furthers our objective to increase Enbridge's North American footprint. The Sulphur River facilities are highly complementary with our existing asset base in the Gulf Coast region and provide another link in our strategy to increase the scale and scope of our US operations. Since the acquisition of Midcoast Energy Resources in May of 2001, we have been actively pursuing opportunities that will position us for profitable growth."

The Sulphur River facilities include 1,100 miles of gathering pipelines, six gas treatment plants with an elemental sulfur capacity of more than 900 tons/day, three gas processing plants with a capacity of 245 MMcfd, and two nitrogen rejection plants with a capacity of 75 MMcfd.

The acquisition is expected to close in early March, subject to regulatory approvals.