Ironwood closes deal to buy South Texas midstream assets

Ironwood Midstream Energy Partners II LLC has closed on its acquisition of midstream assets in South Texas from Twin Eagle Gardendale Pipeline LLC, a subsidiary of Twin Eagle Holdings NA LLC.

The assets include the Gardendale and Asherton gathering systems, which together total 150 miles of active crude oil gathering pipelines with connections to multiple long-haul pipelines with access to the US Gulf Coast, Three Rivers, and Houston markets. Interconnects include Plains All American Pipeline, Harvest Pipeline Co., NuStar Logistics LP, and the forthcoming EPIC Crude Oil Pipeline. The systems span Dimmit and La Salle counties and are supported by long-term dedications totaling more than 124,000 acres. Ironwood II will refer to the combined systems as the Gardendale System.

Ironwood and Twin Eagle announced the sale agreement in November as Ironwood Midstream Energy Partners II was formed with an initial commitment of $400 million from EnCap Flatrock Midstream and management.

At closing, Danny Rea, former Twin Eagle executive vice president and chief operating officer, joined Ironwood II as chief commercial officer and board member.