Enbridge to buy gas gathering, processing system from Atlas

Atlas Pipeline Partners LP reported entering into a definitive agreement to sell its Elk City natural gas gathering and processing system to Enbridge Energy Partners LP for $682 million in cash, subject to working capital adjustments.

July 29, 2010

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, July 29 -- Atlas Pipeline Partners LP reported entering into a definitive agreement to sell its Elk City natural gas gathering and processing system to Enbridge Energy Partners LP for $682 million in cash, subject to working capital adjustments.

The sale includes 800 miles of pipeline, one hydrogen sulfide treating plant, and three cryogenic processing plants in the Texas Panhandle and southwestern Oklahoma. The Elk City system can move 370 MMcfd of gas and produces 20,000 b/d of NGLs. Enbridge plans to integrate the system into its 1,800-mile Anadarko system, already operating in the region with six gas processing plants.

The companies expect the transaction to close by yearend, pending regulatory approvals.

Atlas described the sale as providing growth opportunities, particularly in its Laurel Mountain Midstream asset in the Marcellus shale, and reducing commercial risk.

Contact Christopher E. Smith at [email protected].