Third Coast Midstream Announces Sale of its East Texas Gathering and Processing Business to J. Global Energy Midstream LLC.
HOUSTON, Dec. 7, 2020 /PRNewswire/ -- Third Coast Midstream, LLC ("Third Coast Midstream") today announced that on December 4, 2020, a subsidiary completed the sale of its East Texas gathering, processing, and fractionation business ("3CM East Texas") to J. Global Energy Midstream LLC ("J. Global"). 3CM East Texas consists of a 710-mile oil and gas gathering system, a 23-mile inbound liquids pipeline and a 12-mile outbound liquids pipeline, 3 cryogenic gas processing plants with a combined 50 MMcfd of capacity, a 11,300-bpd of fractionation capacity, 4,000 bpd of trucking capacity, and a rail system, which connects to Union Pacific, that has 3,000 bpd of rail capacity.
"Third Coast Midstream is pleased to announce the sale of 3CM East Texas to J. Global," stated Matt Rowland, President and Chief Executive Officer of Third Coast Midstream. "This sale is one of the final steps in Third Coast Midstream's plan to divest its onshore assets and focus on its core Gulf of Mexico midstream infrastructure business. I would also like to congratulate the J. Global team on the acquisition. We look forward to working with them to ensure a smooth transition."
"This has been a fantastic opportunity for J. Global Energy Midstream LLC which will be led by Avery Plank, who has accepted the challenge to develop this new venture. The acquisition of the East Texas gathering and processing facilities represents a tremendous value to the shareholders and has greatly enhanced our capacity in supply and trading with our commercial partners worldwide," said Cristiano Costa, Chief Executive Officer of J. Global Energy Holdings.
Simmons Energy served as exclusive financial advisor to Third Coast Midstream, while Gibson Dunn & Crutcher served as Third Coast Midstream's counsel. Baker Botts served as J. Global's counsel. The terms of the transaction are not being disclosed.
For media inquiries:
Third Coast Midstream, LLC Nadine Moustafa General Counsel (346) 341-3412
About Third Coast Midstream, LLC
Headquartered in Houston, Texas, Third Coast Midstream is a full-service midstream company with assets that provide critical midstream infrastructure linking producers of natural gas, crude oil, NGLs, and condensate to end-use markets. Third Coast Midstream's assets are strategically located in the prolific Deepwater Gulf of Mexico. Third Coast currently owns or has an ownership interest in approximately 1,800 miles of interstate and intrastate pipelines, as well as ownership in a gas processing plant, and an offshore semi-submersible floating production system with processing capacity of up to 100 MBbl/d of crude oil and 240 MMcf/d of natural gas.
About J. Global Energy Midstream LLC
J. Global Energy Midstream LLC is a wholly owned subsidiary of J. Global Energy Holdings Inc., a fully integrated oil, petrochemical and trading business with operations around the globe. J. Global's business is the purchase, sale, marketing, storage, blending, and transportation of a wide range of petroleum products, and is currently expanding and diversifying its operations towards the energy market. With the addition of the gathering, processing, fractionation and transportation business, J. Global has acquired new capability in the supply chain linking producers to end-users and greatly enhancing its supply and trading capacity.
SOURCE Third Coast Midstream, LLC