The system is located in Caddo Parish, Louisiana and Harrison County, Texas, in an area of the Haynesville shale play with increasing rig activity and growing production
ArcLight to acquire Haynesville gas gathering system. (Credit: penywise/Freeimages)
ArcLight Capital Partners, LLC (“ArcLight”) and Cutlass Energy Partners, LLC (“Cutlass”) announced today that their affiliate, Saber Midstream, LLC has entered into an agreement with an undisclosed seller to acquire a natural gas gathering system in the Haynesville basin of Louisiana and Texas. The parties anticipate closing the transaction in the coming weeks, subject to certain conditions and regulatory approval. The transaction will be supported by a long-term gathering agreement that includes an acreage dedication and minimum volume commitment from an upstream affiliate of the seller.
The system is located in Caddo Parish, Louisiana and Harrison County, Texas, in an area of the Haynesville shale play with increasing rig activity and growing production. It is well situated to access transportation to supply large markets in Louisiana and Texas, including growing liquefied natural gas (LNG) export markets.
The system was constructed between 2020 and 2022 and has a nominal capacity of up to 1.2 Bcf per day. It was designed with an ESG focus for efficient operations and to minimize emissions, including solar/battery powered meters.
“ArcLight is pleased to have the opportunity to acquire modern infrastructure to assist in the development of clean natural gas to help in the nation’s energy transition,” said Josef Alves, Managing Director at ArcLight. “We strongly believe that responsible natural gas production will be central to providing energy security for the country and the world as we transition toward a clean energy future.”
Don Kirkendall, CEO of Cutlass added, “Cutlass is excited to establish itself as a natural gas infrastructure player in the Haynesville via its partnership with ArcLight in Saber Midstream. Our proximity to multiple markets including the increasingly significant Gulf Coast LNG market will allow us to pursue a strategy of expansion to offer shippers attractive natural gas midstream solutions. We look forward to participating in the growth of this critical component bridging to the future of U.S. clean energy infrastructure.”
Source: Company Press Release