April 2013, Vol. 240 No. 4
In The News
Regency Energy Partners Expands Footprint In Permian Basin
Regency Energy Partners L.P. will acquire Southern Union Gathering Co. LLC, the owner of Southern Union Gas Services Ltd. (SUGS), from Southern Union Co., a jointly owned affiliate of Energy Transfer Equity L.P. and Energy Transfer Partners L.P. The $1.5 billion acquisition will significantly expand Regency’s presence the Permian Basin.
The transaction will include the purchase of a 5,600-mile gathering system and 500 MMcf/d of processing and treating facilities in West Texas and New Mexico for natural gas and natural gas liquids. In addition, SUGS is finishing construction of the 200 MMcf/d Red Bluff processing plant with associated treating which is expected to be in service shortly. An additional 200 MMcf/d cryogenic processing facility with associated treating is in the planning stages and is expected to be in service in mid-to-late 2014.
“This acquisition represents a significant growth opportunity for Regency and is very strategic to our plans for expansion in the Permian Basin,” said Mike Bradley, president and CEO of Regency Energy Partners. “The integration of the SUGS assets with our existing operations will position Regency with a broad Permian Basin gathering and processing footprint. The combined system is expected to provide significant synergies, increase efficiencies on our current system, improve the flexibility of our gathering and processing operations and enhance services for our customers.”
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