Enterprise Products Partners has acquired the State Line and Fairplay natural gas gathering and treating systems for $1.2bn from subsidiaries of M2 Midstream (Momentum).
The assets acquired are located in northwest Louisiana and East Texas that gather natural gas from the Haynesville/Bossier Shale plays, in addition to the Cotton Valley and Taylor Sand formations.
The company said that the purchase of assets will complement the extension of Enterprise’s Acadian pipeline system now under way, which will provide shippers with takeaway capacity from the Haynesville Shale and flexible options to reach the markets, including access to nine interstate pipeline systems.
In addition, Momentum’s gathering and treating assets will also extend the partnership’s integrated value chain through future interconnects of these gathering facilities to Enterprise’s Texas Intrastate natural gas pipeline system, along with supporting deliveries of natural gas liquids (NGLs) into the Panola Pipeline, and to the partnership’s fractionation, storage and distribution complex at Mont Belvieu, Texas.
The State Line system has a capacity of 400 million cubic feet per day (MMcf/d), which will increase to 700MMcf/d following the completion of a 50-mile expansion project, which is expected in June 2010.
The Fairplay system includes 249 miles of natural gas pipelines located in Rusk, Panola, Gregg and Nacogdoches Counties, Texas. Current capacity of this system is approximately 285MMcf/d.