Black Bear Transmission, a portfolio company of the second Basalt fund, has closed the acquisition of Ozark Gas Transmission, (OGT) and Ozark Gas Gathering (OGG) from a subsidiary of Canada-based energy infrastructure firm Enbridge.
OGT owns and operates a 367-mile interstate natural gas pipeline transportation system, which extends from southeastern Oklahoma through Arkansas to southeastern Missouri.
Regulated by the US Federal Energy Regulatory Commission (FERC), the system has significant interconnectivity to major long-haul natural gas pipelines.
OGG owns and operates 330-mile natural gas gathering system
OGG owns and operates a fee-based, 330-mile natural gas gathering system. It accesses Fayetteville Shale and Arkoma production that feeds into OGT. Financial terms of the deal were undisclosed.
Black Bear Transmission CEO Rene Casadaban said: “We are very excited to add the Ozark pipeline and gathering system to the Black Bear Transmission portfolio.
“This investment expands our asset base of high-quality, demand-driven natural gas pipelines serving utilities and other key end-user customers across the Southeastern United States. We look forward to working with the Ozark operations team to continue providing safe and reliable service to all of the Ozark customers.”
For Basalt, Barclays served as exclusive financial advisor while Morgan, Lewis & Bockius served as legal advisor.
Earlier this year, Enbridge has agreed to acquire Rio Bravo Pipeline (RBPL) from NextDecade for not more than $25m.
The Rio Bravo Pipeline has the capacity to carry up to 4.5 billion cubic feet per day of gas from the Agua Dulce supply area to NextDecade’s Rio Grande LNG project, located in the Port of Brownsville, Texas.
Additionally, the companies have entered into an agreement whereby NextDecade will retain its rights to the natural gas firm transportation capacity on the Rio Bravo for at least 20 years to supply NextDecade’s Rio Grande LNG export facility.
