Kinder Morgan Completes Acquisition of Southcross Energy Assets
HOUSTON (P&GJ) — Kinder Morgan Tejas Pipeline completed its $76 million acquisition of Southcross Energy natural gas pipeline assets Thursday, including the Corpus Christi Pipeline Network and Bay City Lateral.
“We continue to focus on opportunities to increase our natural gas connectivity to meet LNG facilities, Gulf Coast power, industrial and petrochemical demand,” said Kinder Morgan Natural Gas Midstream President Sital Mody.
“These assets are a nice complement to our existing Texas portfolio of assets and allow for further connectivity on our Texas Intrastate system,” Mody said
Kinder Morgan Tejas Pipeline is a subsidiary of Kinder Morgan, Inc.
A U.S. Bankruptcy Court last month approved Southcross' sale of its natural gas pipeline network in Corpus Christi, Texas, to Tejas for $76 million and its pipelines and related assets in Mississippi and Alabama to Magnolia Infrastructure Holdings for $31.5 million. The Magnolia deal is expected to close by year-end.
After the asset sales are completed, Southcross said it plans to reorganize and focus on the growth of its substantial Texas gathering and processing operations. These operations include the Company’s Lancaster and Valley Wells facilities and the Lone Star, Woodsboro and Bonnie View plants.
James W. Swent III, chairman, president and CEO of Southcross, said the company determined through a comprehensive review that its best course was to sell the selected pipeline assets and focus on its gathering and processing operations "to complete the reorganization process and emerge as a stronger, more profitable standalone business.
"Our facilities are well-positioned in the Eagle Ford Shale area, and we look forward to driving growth by safely providing customers with our complementary suite of gas gathering, processing, treating, fractionation and re-delivery of residue gas services," Swent said.
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