Basalt Infrastructure Partners is buying Third Coast Midstream’s Southeastern US natural gas transmission business for an undisclosed sum.
Basalt said a fund managed by Basalt Infrastructure Partners II has entered into an agreement to acquire the business which includes seven regulated natural gas lateral pipelines with total capacity of over 1,600MDth per day, stretching approximately 550 miles.
David Greenblatt, partner of Basalt Infrastructure Partners, exclusive investment advisor to the Basalt funds, 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.
“The business is strategically positioned to capture continued industrial growth in the region.
“Cash flows from the business are anchored by long-term firm transportation contracts with a diverse customer base of utility, power and industrial customers.”
Matt Rowland, Third Coast’s president and CEO, said: “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.”