THE Texas-based midstream natural gas company Crosstex Energy announced on 1 July that it has completed the acquisition of a package of assets in Mississippi, Texas, Alabama, and Louisiana from Duke Energy Field Services for $67.35 million. The acquisition increases Crosstex’s total length of gathering and transmission pipelines from approximately 2700km to approximately 4000km, an increase of 47%, and increases the volumes handled by Crosstex to over 1Bscf/d, based on 2003 first quarter volumes for Crosstex and the acquired assets.
Among the assets acquired are:
The AIM pipeline system (to be renamed Crosstex Mississippi pipeline), 1000-km long gathering and transmission system that gathers wellhead production in south-central Mississippi and markets gas to industrial and power plant users. Covering 15 counties, the system consists of 4-20in pipeline, and recent throughput on the system has averaged approximately 82 MMscf/d.
The Black Warrior pipeline system (to be renamed the Crosstex Alabama gathering system), which consists of approximately 200km of 4-12in gathering systems in Alabama. The primary gas supply is from coalbed methane gas from the Black Warrior Basin, with recent average throughput of approximately 13,800MMBtu/d.