American Midstream Acquires Gulf of Mexico Gas Gathering Interest

April 2016, Vol. 243, No. 4

American Midstream Partners bought a 66.7% interest in the 100-mile Okeanos pipeline, a gas gathering system located in the Gulf of Mexico, from an affiliate of the partnership’s general partner. The acquisition complements the company’s existing offshore infrastructure and strengthens its in offshore infrastructure in the deep-water.

The $225 million acquisition came in conjunction with the purchase of interests in Destin, Tri-States and Wilprise, as well as crude, natural gas, and salt water onshore and offshore pipelines acquired from Chevron and the acquisition of an incremental interest in E&P company Delta House.

The Okeanos pipeline has total capacity of 1 Bcf/d and connects two platforms and one lateral, terminating at the Destin Main Pass 260 platform in the Mississippi Canyon region of the Gulf of Mexico. The pipeline is designed to meet capacity requirements for platforms currently connected and has existing capacity to accommodate third-party volumes via subsea tie-backs or new export lines. Contracted volumes on Okeanos are based on life-of-field dedication. Enbridge, Inc. is the minority interest holder.

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