EnLink Midstream companies EnLink Midstream Partners LP and EnLink Midstream LLC announced that a subsidiary of the partnership entered into a definitive agreement with Chevron Pipe Line Co. and Chevron Midstream Pipelines LLC. Under the agreement, the subsidiary will acquire Gulf Coast natural gas pipeline assets including the Bridgeline system in southern Louisiana for $235 million, subject to certain adjustments.

The assets include about 1,400 miles of gas pipelines crossing from Beaumont, Texas, to the Mississippi River corridor and about 11 billion cubic feet of working natural gas storage capacity in Southern Louisiana. These assets will complement EnLink Midstream Partners’ existing Louisiana assets, Barry E. Davis, EnLink Midstream president and CEO said.

“The assets will support our growth strategy by expanding our franchise position in southern Louisiana, a dynamic and growing market we know well,” Davis said. “These high-quality assets will complement our existing business and provide us with opportunities to serve a wider range of customers with an expanded range of services.”

Included assets are:

  • The Bridgeline System: about 985 miles of gas pipelines in southern Louisiana with a capacity of about 920,000 million cubic feet per day (MMcf/d);
  • The Sabine System: about 150 miles of gas pipelines in Texas and southern Louisiana with a capacity of about 235,000 MMcf/d;
  • Chandeleur System: about 215 miles of offshore Mississippi and Alabama pipelines with a capacity of about 330,000 MMcf/d;
  • Three storage caverns in southern Louisiana with a combined working capacity of about 11 billion cubic feet (Bcf), including two near Sorrento, La., with a capacity of 4 Bcf and one inactive cavern near Napoleonville, La., with about 7 Bcf of capacity; and
  • Ownership and management of the title tracking services offered at the Henry Hub, the delivery location for NYMEX natural gas futures contracts.

The transaction is is expected to be complete in the fourth quarter, and is subject to the satisfaction of customary closing conditions contained in the agreement, including receipt of certain regulatory approvals.