Enterprise Products buys gathering assets

Enterprise Products Partners LP, Houston, acquired gas gathering systems and related contracts for $325 million total in cash and stock from Cerrito Gathering Co. Ltd., an affiliate of Lewis Energy Group LP, San Antonio.

July 14, 2006

By OGJ editors
HOUSTON, July 14 -- Enterprise Products Partners LP, Houston, acquired gas gathering systems and related contracts for $325 million total in cash and stock from Cerrito Gathering Co. Ltd., an affiliate of Lewis Energy Group LP, San Antonio.

The transaction involved $146.2 million in cash and 7.1 million Enterprise shares for Cerrito gathering systems near Laredo. Enterprise bought 484 miles of pipeline and 31,000 hp of compression.

The Cerrito system connects with more than 1,450 wells producing 100 MMcfd from the Olmos and Wilcox Trends. Volumes gathered are delivered into Enterprise's pipeline infrastructure.