Enterprise Products Partners affiliate acquires Azure Midstream

March 21, 2017 By    

An affiliate of Enterprise Products Partners entered into an agreement to acquire the midstream business and assets of Azure Midstream Partners LP. Operating subsidiaries of Azure in east Texas and north Louisiana were also acquired.

Enterprise acquired the midstream company through Azure’s bankruptcy auction proceedings with a winning bid of $189 million, the company says. The U.S. Bankruptcy Court for the Southern District of Texas entered an order approving the sale to Enterprise’s affiliate on March 15.

The acquired assets include more than 960 miles of natural gas gathering pipelines, three natural gas processing facilities with a capacity of about 210 million cu. ft. per day and two 10,000-barrel-per-day natural gas liquids (NGL) pipelines. The assets are located throughout Texas in Panola, Harrison, Angelina, Shelby, San Augustine, Sabine, Nacogdoches and Rusk counties, as well as in DeSoto and Caddo parishes in Louisiana. The system serves production from the Haynesville, Bossier, Cotton Valley and Travis Peak shale formations.

“We are pleased to acquire these assets,” says William Ordemann, executive vice president of Enterprise’s general partner. “These assets are very complementary to our east Texas NGL, Texas Intrastate natural gas pipeline, and our Haynesville gathering and Acadian natural gas pipeline systems.”

Enterprise expects to close the transaction as early as April 2017 as long as regulatory approvals and closing conditions are met.

About the Author:

Megan Smalley was an associate editor at LP Gas magazine.

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