Enbridge Inc. sold natural gas pipeline transportation and gathering systems in the southeastern U.S., according to Black Bear Transmission LLC, which said it had acquired the assets for an undisclosed amount.
In an April 1 company release, Black Bear said it completed the acquisition of Ozark Gas Transmission LLC and Ozark Gas Gathering LLC from a subsidiary of Calgary, Alberta-based Enbridge.
Based in Houston, Black Bear is a portfolio company of Basalt Infrastructure Partner LLP’s second fund. The investment firm formed Black Bear through the acquisition of Third Coast Midstream LLC’s natural gas transmission business, which closed December.
Rebrand as Black Bear Transmission, the natural gas transmission business included seven regulated natural gas pipelines, stretching approximately 550 miles. The pipelines were connected to eight major long-haul pipelines, ensuring reliable gas supply to customers across Louisiana, Alabama, Mississippi, Tennessee and Arkansas.
The acquisition of Ozark Gas Transmission adds a 367-mile, FERC-regulated interstate natural gas pipeline transportation system. The system extends from southeastern Oklahoma through Arkansas to southeastern Missouri and has significant interconnectivity to major long-haul natural gas pipelines.
The deal also includes a fee-based, 330-mile natural gas gathering system that connects regional production into the Ozark Gas Transmission pipeline.
Commenting on the acquisition, Black Bear CEO Rene Casadaban said in a statement: “This investment expands our asset base of high-quality, demand-driven natural gas pipelines serving utilities and other key end-user customers across the Southeastern United States.”
Barclays was exclusive financial adviser to Basalt and Morgan, Lewis & Bockius LLP served as the firm’s legal adviser. TD Securities was exclusive financial adviser to Enbridge and Norton Rose Fulbright US LLP provided the company legal advice.
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