A subsidiary of EnLink Midstream Partners LP and EnLink Midstream LLC has agreed to acquire Gulf Coast natural gas pipeline assets, including the Bridgeline system predominantly residing in Southern Louisiana, from Chevron Pipe Line Co. and Chevron Midstream Pipelines LLC for $235 million. The transaction is expected to be completed in the fourth quarter.
The assets include 1,400 miles of natural gas pipelines spanning from Beaumont, Tex., to the Mississippi River corridor and 11 bcf of working natural gas storage capacity in Southern Louisiana.
“The assets will support our growth strategy by expanding our franchise position in southern Louisiana, a dynamic and growing market we know well,” commented Barry E. Davis, EnLink Midstream president and chief executive officer.
The assets include:
• Bridgeline system: 985 miles of gas pipelines in southern Louisiana with a total system capacity of 920,000 MMcfd.
• Sabine system: 150 miles of gas pipelines in Texas and southern Louisiana with a total capacity of 235,000 MMcfd.
• Chandeleur system: 215 miles of offshore Mississippi and Alabama pipelines with a total capacity of 330,000 MMcfd.
• Storageassets: three caverns in southern Louisiana with a combined working capacity of 11 bcf, including two near Sorrento, La., with a capacity of 4 bcf and one inactive cavern near Napoleonville, La., with 7 bcf of capacity.
• Henry Hub: ownership and management of the title tracking services offered at Henry Hub, La.
EnLink in August formed a joint venture with Marathon Petroleum Corp. to build a 30-mile NGL pipeline extension to Marathon’s Garyville, La., refinery (OGJ Online, Aug. 6, 2014).
