Enterprise Products Partners LP (NYSE: EPD) and American Midstream Partners LP (NYSE: AMID) are teaming up to optimize Gulf Coast assets, the Houston-based companies said in an Aug. 23 joint press release.

The agreement includes a purchase option under which American Midstream may elect to acquire a 25% interest in Enterprise’s Pascagoula natural gas processing plant located in Mississippi for an undisclosed amount.

The purchase option is subject to certain conditions, including American Midstream completing modifications to certain facilities on its High Point pipeline system that will provide incremental natural gas volumes with access to the Pascagoula plant.

American Midstream’s High Point pipeline system currently delivers offshore natural gas production to the Enterprise-operated Toca Gas Plant in St. Bernard Parish, La., for processing services. However, the Toca plant owners have voted to discontinue operations as a result of the pending modifications to the High Point facilities.

Enterprise said the company, along with other Toca plant owners, expect to realize significant operating expense savings from idling the Toca facility and utilizing existing processing capacity at the “more efficient” Pascagoula plant.

“We are pleased to work with American Midstream to find a creative ‘win/win’ solution for our customers and partners in the Toca plant,” Brad Motal, senior vice president for natural gas assets and marketing of Enterprise’s general partner, said in a statement.

Customers of the Toca plant will have the option to enter into similar processing arrangements with the Pascagoula facility, which should provide customers with higher netbacks in the form of improved NGL recoveries and reduced energy costs, according to the joint release.

Locke Lord LLP was legal counsel for Enterprise and Sidley Austin LLP was American Midstream’s legal counsel for the transaction.