ArcLight Capital Partners has acquired Midcoast Operating from Enbridge for $1.1 billion, including pipeline, processing plants and storage assets.
Midcoast consists of three large, legacy gathering and processing systems in Texas and Oklahoma, a long-haul NGL transmission system delivering NGLs from multiple supply areas and a marketing and logistics business.
The assets include 11,900 miles of gas and NGL pipelines, 25 processing plants with over 2 billion cubic feet per day of capacity and 12 treating plants, an E/P fractionator and numerous liquid logistics assets, including storage terminals.
Dan Revers, founder and managing partners of ArcLight, says: 'We believe Midcoast represents a rare opportunity to acquire a large scale, diversified midstream business with exciting commercial and growth capital investment opportunities. We are very excited to add the Midcoast platform to our portfolio of midstream investments.'
Rob Bond, who will become CEO of the company under ArcLight's ownership, adds: 'Midcoast owns a permier set of midstream assets that provide excellent Gulf Coast connectivity for natural gas and NGLs, bringing wide basis differentials that have arisen between producing basins and coastal demand centres.'
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