Consolidation in the midstream space continues this week with the latest news from Houston-based Black Bear Transmission, which will acquire Ozark Gas Transmission (OGT) and Ozark Gas Gathering (OGG) from a subsidiary of Canada-based Enbridge. If you’re keeping count, that’s four name drops in one sentence but hang with us as we peel back the layers.
Basalt Infrastructure Partners
Basalt I and Basalt II are two of the flagship Basalt Infrastructure Partner funds. They are infrastructure equity investment funds focusing on investments in utilities, power, transport, and communications infrastructure in North America and Europe. Other investments by the Basalt funds in North America include the Upper Peninsula Power Company, Texas Microgrid, DB Energy Partners, Detroit Thermal, Hyperion and Helios Power.
Enbridge Inc. is a Canadian multinational energy transportation company based in Calgary, Alberta. It focuses on the transportation, distribution and generation of energy, primarily in North America.
Last December, N.Y.-based private equity firm Basalt Infrastructure Partners acquired Third Coast Midstream’s natural gas transmission business, which included seven natural gas pipelines stretching 550 miles with connections to eight major long-haul pipelines across La., Ala., Miss., Tenn., and Ark. Basalt rebranded its newest portfolio company Black Bear, and set off to explore opportunities to expand both the midstreamer’s asset base and utility and industrial customers in the Southeast.
With the close of its acquisition of OGT and OGG, Black Bear has found what amounts to a honey of an opportunity. OGT’s assets include a 367-mile interstate gas transportation system that extends from southeastern Okla., through Ark., and into southeastern Mo. OGG is a 330-mile gathering system, which sources gas from the Fayetteville Shale and Arkoma Basin that feeds into the OGT line. OGT also offers multiple connections that include Enbridge’s Texas Eastern Transmission System, Centerpoint’s Mississippi River Transmission, Boardwalk’s Texas Gas pipeline, and Kinder-Morgan’s NGPL.
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