Velocity’s assets include about 120 miles of crude oil and condensate gathering and transportation pipelines in the Eagle Ford Shale area of South Texas.
It also includes a projected throughput capacity of about 150,000 barrels per day and an aggregate of 185,000 barrels of condensate storage capacity located at Catarina and the Gardendale Hub, which Velocity conceived.
The system, which extends through portions of Dimmit, Webb and La Salle counties, Texas, is supported by long-term acreage dedications or volume commitments from several large Eagle Ford producers.
Energy Spectrum Capital managing partner Jim Benson, said the company is proud to be partnered with Velocity’s management team in the development of such a strategic asset in the prolific Eagle Ford Shale.
"Velocity’s management team envisioned this system well before an opportunity arose and worked diligently to execute on its plan" added Benson.
Evercore Partners has been appointed as the sole financial advisor to Velocity Midstream Partners on this transaction.
Velocity South Texas Gathering is a subsidiary of Velocity Midstream Partners.
