September 19, 2011

HPGT to acquire SNG natural gas pipeline assets

High Point Gas Transmission (HPGT) has signed a purchase and sale agreement with Southern Natural Gas (SNG) to acquire natural gas pipeline assets near its Toca compressor station in New Orleans, US. Under the agreement, the company will acquire 621 miles of onshore and offshore pipeli

By cms admin

High Point Gas Transmission (HPGT) has signed a purchase and sale agreement with Southern Natural Gas (SNG) to acquire natural gas pipeline assets near its Toca compressor station in New Orleans, US.

Under the agreement, the company will acquire 621 miles of onshore and offshore pipelines, ranging from 4in to 26in at a water depth of 1,000ft.

The deal includes four platforms, 68 active receipt points, 25 active delivery points, related pig launching and receiving equipment, machinery, electronic flow measurement and communications equipment.

The transaction is expected to close in 2012 and is subject to the receipt of approval from the Federal Energy Regulatory Commission and other customary closing conditions.

HPGT is a partnership between an affiliate of ArcLight Capital Partners and High Point Energy, which have also agreed to contribute assets to HPGT in a bid to grow the business.