Energy Spectrum Partners, a group of co-investors affiliated with Energy Spectrum and an affiliate of Tenaska Capital Management contributed cash for an ownership stake in Azure, as part of the deal.

In a related transaction, Tenaska Capital’s East Texas Gathering (EGT) System is being contributed for an additional ownership interest, while EXCO and BG will acquire Azure’s 7% interest, as partial consideration to the transaction.

As a result of combination of TGGT and EGT, Azure is expected to operate about 1,300 miles of gathering pipelines that supplies natural gas from North Louisiana and East Texas supply basins to around 20 existing major intrastate and interstate pipelines in the region.

The pipelines are expected to hold a delivery capacity of around 4 billion cubic ft per day, including 2.7bcfd of treating capacity, while the systems are currently gathering and delivering around 1.3bcfd.

Azure Midstream Holdings president Chip Berthelot said, "Azure is very pleased to complete this agreement to acquire TGGT and we appreciate the continued support of Energy Spectrum as our third-time sponsor and J.P. Morgan as the debt arranger for this transaction."