Southcross acquires South Texas pipelines
Southcross Energy Partners acquired natural gas pipelines near Corpus Christi, Texas, along with contracts related to those pipelines. The purchase price is approximately USD 40M in cash and funds for the acquisition were drawn from Southcross’ existing credit facility. The pipelines were acquired from Onyx Midstream and Onyx Pipeline Company.
The pipelines, which range from 12” to 24” in diameter, transport natural gas to two power plants in Nueces County, Texas under fixed-fee contracts that extend through 2029. Total length of the pipelines is approximately 50 miles. Natural-gas volumes through the pipelines averaged 97MMcfd during 2013.
"We are expanding our platform with the acquisition of these pipelines”, said David Biegler, chairman and CEO of Southcross’ general partner. "They complement our integrated midstream strategy of delivering products to end-use markets and customers and are significant additions to our pipelines in the Corpus Christi area.”