Located in and around Lavaca County, Texas, the gathering business assets consist of more than 418km of natural gas gathering pipes and connected infrastructure
US-based Starwood Energy Group Global has agreed to acquire gas gathering system from Third Coast Midstream for an undisclosed price.
Based in and around Lavaca County, Texas, the gathering business assets consist of more than 418km of natural gas gathering pipes and connected infrastructure.
The system supplies gathering and artificial gas lift services to local upstream customers focused on oil and gas production in the Eagle Ford.
Starwood Energy CEO Himanshu Saxena said: “The Lavaca system represents a unique opportunity to own a critical piece of Eagle Ford gathering infrastructure.
“The business mix of gas gathering and artificial gas lift results in a more stable cash flow profile for the asset and fits well within our overall strategy.
“The Third Coast team has built a great business and we are looking forward to continuing to provide exceptional service to our customers as we look to expand the system and grow our midstream platform.”
For the transaction, Vinson & Elkins acted as legal advisor to Starwood while Gibson, Dunn & Crutcher served as a legal advocate to Third Coast.
Third Coast President and CEO Matt Rowland said: “Our Eagle Ford natural gas infrastructure platform has grown significantly since we acquired it in 2014.
“We expect that with Starwood’s established infrastructure experience and financial strength, the system will continue that growth in a safe, efficient manner.
“This transaction follows Third Coast’s previously announced divestitures as part of Third Coast’s strategic repositioning to focus on its core Gulf of Mexico infrastructure assets.”
Basalt acquired natural gas transmission business from Third Coast Midstream in October
In October, a fund managed by Basalt Infrastructure Partners II announced that it has entered into a definitive agreement to acquire Third Coast Midstream’s natural gas transmission business.
The natural gas transmission business consists of 7 regulated natural gas lateral pipelines with total capacity of more than 1,600 MDth per day, stretching nearly 885km. The lateral pipelines are connected to 8 major long-haul pipelines, supplying gas to customers across Louisiana, Alabama, Mississippi, Tennessee and Arkansas.