Enterprise Products to acquire M2 Midstream assets
Enterprise Products Partners LP agreed to buy two natural gas gathering and treating systems from subsidiaries of M2 Midstream LLC for $1.2 billion.
By OGJ editors
HOSUTON, Apr. 1 -- Enterprise Products Partners LP agreed to buy two natural gas gathering and treating systems from subsidiaries of M2 Midstream LLC for $1.2 billion.
These systems are in northwest Louisiana and East Texas and gather natural gas produced from the Haynesville-Bossier shales and the Cotton Valley and Taylor Sands formations. Subject to regulatory approvals, closing is expected by early May.
The State Line system is in Desoto and Caddo parishes in Louisiana and in Panola County in Texas. The system includes 138 miles of gas pipelines with a capacity of 400 MMcfd and two treating facilities. The system began operations in February 2009 and currently gathers 260 MMcfd.
A 50-mile expansion of this system is expected to be completed in June and will increase its capacity to 700 MMcfd. The State Line system will interconnect with the 42-in. Haynesville extension of Enterprise’s Acadian gas pipeline system.
The Haynesville extension is under construction and expected to be completed in third-quarter 2011. Once connected to the Haynesville Extension, the State Line system could be further expanded to 1.2 bcfd.
The Fairplay system is in the Texas counties of Rusk, Panola, Gregg, and Nacogdoches. The system includes 249 miles of gas pipelines (including 62 miles leased from third parties) with capacity of 285 MMcfd. It’s gathering 180 MMcfd.
This system is expected to be connected to the Enterprise Texas Pipeline system by first-quarter 2011.