The consultant studied 107 reservoir sites including depleted oil and gas fields based on the evaluation of their geological characteristics, injection and extraction facilities, required gas injection and production facilities, connection to existing and proposed gas infrastructure including the project pipeline system and time lines to prepare these reservoirs as SUGS
"The integration of the SUGS
assets with our existing operations will position Regency with a broad Permian Basin gathering and processing footprint.
Additionally, Regency expanded its presence in the Permian Basin with the SUGS
assets, which include a 5,600-mile gathering system and about 500 MMcf/d of processing and treating facilities, in west Texas and New Mexico, for natural gas and natural gas liquids.
It will also remove the USD10m annual management fee due from Regency under services contracts for two years after closing.Country: USASector: Petroleum/Natural Gas/CoalTarget: Southern Union Gas Services Ltd (SUGS
), Southern Union Gathering Company LLCBuyer: Regency Energy Partners LPVendor: Southern Union Company, Energy Transfer Equity LP, Energy Transfer Partners LPDeal size in USD: 1.5bnType: Corporate acquisitionFinancing: Cash & Stock, DebtStatus: Closed
As part of the project, SUGS
will construct 60 miles of pipeline to deliver up to 20,000 bpd of NGL into Lone Star NGL'S recently announced Permian-to-Mont Belvieu pipeline expansion, under a 15-year firm arrangement.
28 February 2013 - US-based Regency Energy Partners LP (NYSE:RGP) announced it will buy the owner of Southern Union Gas Services Ltd (SUGS
) for USD1.5bn (EUR1.1bn) in cash-and-stock to extend its presence in the Permian basin.
Southern Union Gathering Company LLC's, the owner of Southern Union Gas Services Ltd (SUGS
), acquisition will include a 5,600-mile gathering system and 500 MMcf/d of processing and treating facilities in west Texas and New Mexico.
The customer is Fort Worth-based Southern Union Gas Services (SUGS
), a division of Southern Union Company (NYSE:SUG), a natural gas company.
This expansion has been initiated by the company's midstream segment, Southern Union Gas Services (SUGS) with completion expected in mid-2013.
SUGS' Red Bluff Project is a 200 MMcf/d natural gas processing plant and associated gathering, compression and treating facilities, which will accommodate natural gas production from existing and future producer commitments in the expanding Avalon, Bone Spring and Wolfcamp plays of West Texas and Southeast New Mexico.