US-based Black Bear Transmission has divested natural gas gathering assets in the US to Mississippi-based Skye MS.
Under the deal, Skye MS acquired more than 120 miles of natural gas pipelines and eight active metered locations that are owned by BBT Mississippi (BBT MS), a unit of Bear Transmission.
BBT MS owns and operates a fee-based, natural gas transmission system that supplies gas to utility, industrial, and power generation customers. It also connects wellhead production in Mississippi to regional long-haul pipelines.
According to Black Bear CEO Rene Casadaban, this deal marks its ongoing efforts to divest non-core, production-focused assets within its pipeline portfolio.
Casadaban added: “We remain committed to our core business, which is to maintain and grow our substantial market-driven natural gas transmission network, while continuing to provide safe and reliable service.”
Financial terms of the agreement were undisclosed.
Black Bear senior vice-president and chief commercial officer Scott Langston said: “As of today, we have successfully transferred more than 700 miles of supply driven gathering pipelines, 20 compressors and 250 metering stations over the past three years.
“We will continue to identify and advance all opportunities to improve our business via corporate development and organic growth initiatives.”
Black Bear Transmission owns and operates 12 natural gas pipelines with a combined delivery capacity of more than 2.6 billion cubic feet per day.
These regulated pipelines, which stretch more than 1,900 miles, are connected to 18 major long-haul pipelines to serve customers across Alabama, Arkansas, Louisiana, Mississippi, Missouri, Oklahoma and Tennessee.