Enterprise’s $2.15-billion midstream purchase
HOUSTON, June 2, 2015 – US midstream company Enterprise Products announced on Monday that it will buy Eagle Ford Shale (EFS) Midstream assets from US oil and gas independent Pioneer Natural Resources and Indian conglomerate Reliance Industries for $2.15 billion.
The EFS Midstream system is integral to Eagle Ford’s gas infrastructure by providing services such as gas gathering, treating, compression and condensate processing. Constructed in 2010, the 740-kilometre natural gas pipeline system has 10 processing plants with a treating capacity of 22.1 mcm (780 mcf) a day.
“This ‘bolt on’ acquisition extends our integrated system deeper into the NGL and condensate rich areas of the Eagle Ford, which will provide us with the ability to offer services to additional producers and increase volumes on our system,” said Michael A. Creel, CEO of Enterprise’s general partner.
The oil and gas industry’s downturn has made selling existing assets more attractive, particularly for companies that own pipelines and other midstream infrastructure. Pioneer announced in November that it was searching for a buyer for its EFS Midstream.