Starwood Energy to acquire Third Coast’s Lavaca gas gathering system

Starwood Energy Group Global has signed a deal to acquire Third Coast Midstream’s Lavaca gas gathering system in Texas, located in and around Lavaca County, for an undisclosed price.

The gas gathering infrastructure includes 260 plus miles of natural gas gathering pipes and related infrastructure. The Lavaca gas gathering system offers gathering and artificial gas lift services to local upstream clients engaged in the production of oil and gas in the Eagle Ford basin.

The transaction marks the first acquisition of Starwood Energy Group Global in the midstream sector. Starwood Energy Group is a private investment firm from Global Greenwich, Connecticut, which is involved in energy infrastructure investments.

Commenting on the acquisition of the Lavaca gas gathering system, Himanshu Saxena – CEO of Starwood Energy said: “The Lavaca system represents a unique opportunity to own a critical piece of Eagle Ford gathering infrastructure. The business mix of gas gathering and artificial gas lift results in a more stable cash flow profile for the asset and fits well within our overall strategy.

“The Third Coast team has built a great business and we are looking forward to continuing to provide exceptional service to our customers as we look to expand the system and grow our midstream platform.”

Starwood Energy Group Global’s legal counsel in the deal is Vinson & Elkins.

Third Coast Midstream to sell its Lavaca gas gathering system in Texas to Starwood Energy Group Global. Photo courtesy of supakitmod at FreeDigitalPhotos.net.

Matt Rowland – President and CEO of Third Coast Midstream, commenting on the sale of the Lavaca gas gathering system, said: “Our Eagle Ford natural gas infrastructure platform has grown significantly since we acquired it in 2014.

“We expect that with Starwood’s established infrastructure experience and financial strength, the system will continue that growth in a safe, efficient manner.  This transaction follows Third Coast’s previously announced divestitures as part of Third Coast’s strategic repositioning to focus on its core Gulf of Mexico infrastructure assets.”

Third Coast Midstream’s legal counsel in the deal is Gibson, Dunn & Crutcher.

Last month, the Texan midstream company agreed to sell its natural gas transmission business to a fund managed by Basalt Infrastructure Partners II GP Limited for an undisclosed price.

The natural gas transmission business involved in the deal are seven regulated natural gas lateral pipelines having a total capacity of more than 1,600 MDth per day, and having a length of nearly 550 miles.

The lateral pipelines are linked to eight major long-haul pipelines for providing gas supply to customers across the states of Louisiana, Alabama, Mississippi, Arkansas, and Tennessee.