The acquired asses have a total capacity of more than 800 million cubic feet per day (MMcf/day) and benefits from significant interconnectivity to major-long haul pipelines, providing reliable, cost-advantaged gas supply to utilities and other key end-users.
Transaction to close in H2-2020
The transaction is expected to close in the second half of 2020, subject to customary regulatory approvals. The terms are not being disclosed. Barclays served as financial advisor to Basalt, while BMO Capital Markets advised Third Coast Midstream.
“This investment expands our asset base of high-quality, demand-driven natural gas pipelines in the south-eastern United States,” said Rene Casadaban, CEO of Black Bear Transmission. “The NGT Assets are highly complementary to our existing Black Bear footprint and are strategically positioned to capture continued natural gas demand growth in the region.”
Matt Rowland, CEO of Third Coast Midstream welcomed the follow-on sale of Natural Gas Transmission assets to Black Bear. “We look forward to another successful transition with the Black Bear team following the sale of these assets, as Third Coast Midstream takes another step in its strategic repositioning to focus on its core Gulf of Mexico infrastructure platform," he said.
Third Coast Midstream owns 5,100 miles of onshore and offshore gas, oil and NGL pipelines, seven gas processing plants and 17 gathering systems. The company has direct exposure to prolific U.S. gas producing regions, including the Eagle Ford Shale of South Texas, the Deepwater Gulf of Mexico, and the Cotton Valley/Haynesville Shale of East Texas.
