Energy company Elevate Midstream Partners has signed a gas gathering and treating agreement with Sabine Oil and Gas.
The transaction was carried out in partnership with Elevate’s financial sponsor Tailwater Capital, which is a Dallas-based private equity firm.
Under the eight-year agreement, Elevate will build 19 miles of 16in gas gathering pipelines and associated laterals, consisting of amine, dehydration and compression facilities in the Carthage area.
This system will be added to the company’s current asset base in the area. It has been designed to support the recent agreement and attract moving gas producers at the Carthage hub.
Elevate Midstream CEO Roger Fox said: “With our existing assets strategically located in the core of the Haynesville and Cotton Valley formations, this new pipeline will both expand our footprint and provide access to the competitive Carthage hub markets for our customers.
“We are delighted that Sabine, our anchor customer, has entrusted us to build our pipeline and continue to service their ambitious needs.
“We will be looking to similarly assist other customers in the region to connect, via our pipeline, to more favourable markets that ultimately will access the increasing Gulf Coast demand.”
Elevate is engaged in the gathering, compression, treatment, processing and transportation of crude oil and natural gas.
Last month, Osaka Gas signed an agreement to acquire 100% of the outstanding shares of Sabine Oil & Gas Holdings’ subsidiary Sabine Oil & Gas Corporation.
Reuters reported that the $610m deal comes as Osaka Gas looks to expand its overseas business for future growth.
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