Houston’s Enterprise Products Partners said it won an auction to buy the natural gas pipeline assets of the bankrupt Azure Midstream with a bid of $189 million.
The auction win gives Enterprise an expanded presence in East Texas and northern Louisiana with 960 miles of natural gas gathering pipelines, three processing facilities, and two natural gas liquids pipelines that can each ship 10,000 barrels daily.
Dallas-based Azure filed in January in the U.S. Bankruptcy Court for the Southern District of Texas with Houston’s M5 Midstream set up as a stalking horse with a minimum bid of $151.5 million. M5 is an affiliate of Houston’s M3 Midstream and Indigo Resources.
After upping the offer with the winning bid, Enterprise Executive Vice President William Ordemann said the assets fit nicely with the existing footprints in East Texas and the Haynseville Shale.
With the bankruptcy court signing off on the sale on Wednesday, Enterprise said the deal could be finalized as soon as April.