High Point Gas Transmission LLC, a partnership between an affiliate of ArcLight Capital Partners LLC and High Point Energy LLC, entered into a purchase and sale agreement with Southern Natural Gas Company LLC to acquire certain natural gas pipeline assets located in SNG's supply area south of the Toca compressor station on its east leg.
The proposed sale encompasses approximately 621 miles of onshore and offshore pipeline ranging from 4-inches to 26-inches in water depths of up to 1,000 feet, including four platforms, approximately 68 active receipt points and 25 active delivery points, and certain related pig launching and receiving equipment, machinery, electronic flow measurement and communications equipment, rights of way, easements, permits and line pack. The sale is subject to FERC approval and certain other customary closing conditions, and is expected to close in 2012.
ArcLight and High Point Energy have agreed to contribute certain other related pipeline assets to Hight Point Gas Transmission and intend to grow the business by partnering with local producers to develop and maintain the infrastructure and producer services needed to grow Gulf Coast oil and gas production and completing targeted acquisitions and capital projects.
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