The assets comprise six intrastate natural gas pipelines covering nearly 2,253km in Alabama, Louisiana and Mississippi
Black Bear Transmission, a portfolio company of the second Basalt fund, has announced the acquisition of natural gas transmission assets (NGT assets) from Third Coast Midstream.
The financial details of the transaction have not disclosed by the company.
The NGT assets are a natural extension to the Southeast United States natural gas transmission business which was acquired by Basalt from Third Coast Midstream last year, which led to the creation of Black Bear.
Black Bear Transmission CEO Rene Casadaban said: “This investment expands our asset base of high-quality, demand-driven natural gas pipelines in the Southeastern United States.
“The NGT Assets are highly complementary to our existing Black Bear footprint and are strategically positioned to capture continued natural gas demand growth in the region.
“We look forward to executing a seamless transition while maintaining safe and reliable service to all of our customers.”
The deal is expected to close in the second half of the year
The firm said that the NGT assets comprise six intrastate natural gas pipelines covering nearly 2,253km in Alabama, Louisiana and Mississippi.
With a combined capacity of over 800MMcf per day, the system benefits from significant interconnectivity to major-long haul pipelines to provide reliable, cost-advantaged gas supply to utilities and other key end-users.
Subject to customary regulatory approvals and closing condition, the deal is expected to close in the second half of the year.
For the deal, Barclays acted as exclusive financial advisor and Vinson & Elkins served legal advisor to Basalt.
Black Bear delivers natural gas from various pipeline receipt points to utility, power generation and industrial customers in the southeast US.