Black Bear Transmission LLC (Black Bear) has announced that it has completed the previously announced bolt-on acquisition of a portfolio of natural gas transmission assets (the NGT Assets) from a subsidiary of Third Coast Midstream LLC (Third Coast Midstream).
Black Bear is a portfolio company of the second Basalt fund (Basalt). This transaction marks Black Bear’s second bolt-on acquisition, having acquired the Ozark system from Enbridge in April 2020.
The NGT Assets include six intrastate natural gas pipelines spanning approximately 1400 miles in Alabama, Louisiana and Mississippi. The system has total capacity of more than 800 million ft3/d and benefits from significant interconnectivity to major long-haul pipelines, providing reliable, cost-advantaged gas supply to utilities and other key end-users.
“We are very pleased to finalize this purchase of additional pipelines from Third Coast Midstream,” said Rene Casadaban, Chief Executive Officer of Black Bear Transmission. “These assets are a perfect fit with Black Bear because they strengthen our footprint of high-quality, demand-driven gas pipelines that are well-positioned to capture increasing natural gas demand in the Southeast United States. A team of seasoned operations and business development personnel will be coming to Black Bear with the assets, allowing us to maintain our focus on providing safe and reliable service to our customers. We appreciate all the work on the part of Third Coast Midstream for making this a successful transaction, and we look forward to completing a smooth transition.”
“We are excited about the follow-on sale of the NGT Assets to Black Bear,” stated Matt Rowland, President & Chief Executive Officer of Third Coast Midstream. “This transaction represents one of the final pieces of Third Coast’s strategic repositioning to focus on its core offshore and Gulf Coast asset base. In addition, Third Coast has executed a commercial services agreement with Black Bear, which will ensure a smooth transition and consistent commercial operations for Black Bear’s customers.”
Barclays served as exclusive financial advisor to Basalt, and Vinson & Elkins served as Basalt’s legal advisor. BMO Capital Markets served as exclusive financial advisor to Third Coast Midstream, while Orrick served as Third Coast Midstream’s legal advisor.
Read the article online at: https://www.worldpipelines.com/business-news/10092020/black-bear-transmission-closes-bolt-on-acquisition-of-natural-gas-transmission-assets-from-third-coast-midstream/
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