Bayou Midstream II closes deal for Bakken gas gathering assets

AGS owns and operates natural gas gathering, compression, and processing assets in Williams, Burke, and Mountrail Counties, ND.

Bayou Midstream II LLC has closed a deal to acquire Argent Gas Solutions LLC (AGS), a subsidiary of Silver Hill Energy Partners LP. Financial details were not disclosed.

AGS owns and operates natural gas gathering, compression, and processing assets in North Dakota's Williams, Burke, and Mountrail counties serving natural gas producers in the northeastern Bakken.

AGS’s gathering infrastructure includes about 85 miles of pipelines, with associated natural gas compression assets and more than 60 MMscfd of natural gas processing capacity. Some 140,000 acres are dedicated to the system.

Bayou Midstream II previously built, owned, and operated pipelines and infrastructure in McKenzie County, ND, and Richland County, Mont.

The AGS acquisition marks Bayou’s return to North Dakota and provides a platform for growth, said EIV Capital LLC—Bayou II Midstream's backer—said as part of a release Nov. 9.

This latest divestment of Bakken assets by AGS follows the operator's recently completed sale of Haynesville gas assets to Centalion Group, formerly Gunvor Group Ltd., in October.

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