A fund managed by Basalt Infrastructure Partners II GP has signed a definitive agreement to acquire the natural gas transmission business from Third Coast Midstream.
The business includes seven regulated natural gas lateral pipelines. They operate at a total capacity of approximately 1,600MDth a day and stretch 550 miles.
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The strategic deal will enable Basalt to capture continued industrial growth in the southeastern US.
Basalt Infrastructure Partners partner David Greenblatt said: “This investment represents a rare opportunity to invest in a portfolio of demand-driven, regulated ‘last-mile’ natural gas pipelines serving utilities and other key end-user customers in the Southeastern US.
“Cash flows from the business are anchored by long-term firm transportation contracts with a diverse customer base of utility, power and industrial customers.”
The transaction is expected to be closed subject to customary closing conditions, which include expiration or termination of regulatory waiting periods.
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By GlobalDataThe terms of the transaction were undisclosed.
Third Coast Midstream president and CEO Matt Rowland said: “We are proud of the accomplishments our team has executed over the last several years in building out this portfolio of high-quality gas transmission assets in the south-east US.
“We are confident that Basalt brings the right combination of financial strength and strategic experience to continue safe, efficient and growing operations.
“The sale is a further step in Third Coast’s strategic repositioning to focus on its core Gulf of Mexico infrastructure platform.”
The latest acquisition will represent Basalt’s ninth investment in its second flagship fund. The fund also invested in DB Energy Assets, Helios Power and Detroit Thermal in the US.
