Third Coast Midstream LLC is unloading a portfolio of natural gas transmission assets through a sale to Black Bear Transmission, a Houston-based portfolio company of Basalt Infrastructure Partners LLP.

The terms of the transaction are not being disclosed. According to a Black Bear release on June 29, the assets are a natural extension to the Southeast U.S. natural gas transmission business that Basalt acquired from Third Coast Midstream in 2019 that resulted in its formation.

“We are pleased and excited about this follow-on sale of natural gas transmission assets to Black Bear,” Matt Rowland, CEO of Third Coast Midstream, said in a statement. “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."

The portfolio of natural gas transmission assets include six intrastate natural gas pipelines spanning approximately 1,400 miles in Alabama, Louisiana and Mississippi. The system has total capacity of more than 800 MMcf/d.

“This investment expands our asset base of high-quality, demand-driven natural gas pipelines in the Southeastern United States,” Rene Casadaban, CEO of Black Bear Transmission, said in a statement. “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.”

Black Bear currently has eight regulated natural gas pipelines stretching more than 1,200 miles, with total delivery capacity of more than 1.8 Bcf/d. The pipelines are connected to 12 major long-haul pipelines, supplying gas to customers across Alabama, Arkansas, Louisiana, Mississippi, Missouri, Oklahoma and Tennessee.

The transaction is expected to close in the second half of 2020, subject to customary regulatory approvals and closing conditions. 

Barclays is exclusive financial adviser to Basalt, and Vinson & Elkins served as Basalt’s legal adviser. BMO Capital Markets is exclusive financial adviser to Third Coast Midstream and Orrick served as its legal adviser.