Subsidiaries of Third Coast Midstream LLC acquired Southcross Energy Partners LP intrastate natural gas pipeline companies in Mississippi and Alabama through a bankruptcy proceeding and notified the Federal Energy Regulatory Commission of the name changes.
Third Coast Midstream filed two notices with the commission Jan. 15. One let FERC know that intrastate pipeline company Third Coast Mississippi LLC had acquired all the assets of Southcross Mississippi Pipeline LP as a result of a bankruptcy proceeding before the U.S. Bankruptcy Court for the District of Delaware involving Southcross Energy Partners. Third Coast Mississippi now owns about 570 miles of pipeline in Mississippi. (FERC docket PR20-22)
The other notice said Third Coast Alabama LLC, an intrastate pipeline company that now owns about 495 miles of pipeline, had acquired the assets of Southcross Alabama Pipeline LLC. (FERC docket PR20-21)
Southcross Energy Partners announced it filed for Chapter 11 bankruptcy protection because of a heavy debt burden in April 2019. It sold the intrastate gas pipeline networks for $31.5 million in cash. The pipeline acquisitions closed Dec. 16, 2019.
The Third Coast Midstream companies said that if FERC accepts their filings, the companies will adopt the commitments of their predecessors for service, rates and filings. "No substantive changes are proposed to any rates or terms and conditions of service applicable to Southcross Mississippi," Third Coast Mississippi wrote in its notice.
The companies, regulated by state commissions, have continued to provide interruptible gas transportation service since the acquisitions. For Third Coast Mississippi, the service is "subject to the maximum rate of $0.2935 per MMBtu," and for Third Coast Alabama, the maximum rate is $0.4793/MMBtu.
Third Coast Midstream, formerly known as American Midstream LLC, owns midstream assets including pipelines and processing plants that connect gas, oil and NGL producers to markets. The assets are in the deepwater Gulf of Mexico and in Eagle Ford and East Texas basins. American Midstream LLC was formerly owned by American Midstream Partners LP, which converted from a master limited partnership to a Delaware limited liability company in July 2019, at which time American Midstream changed its name to Third Coast Midstream. Third Coast Midstream is owned by ArcLight Capital Partners LLC.
Third Coast Mississippi operates estimated transportation capacity of about 345 MMcf/d across 14 counties in Mississippi. It gathers gas from producers, delivers gas to utilities and industrial consumers, and connects to interstate pipelines operated by Southeast Supply Header LLC, Florida Gas Transmission Co. LLC, Southern Natural Gas Co. LLC, Transcontinental Gas Pipe Line Co. LLC and Texas Eastern Transmission LP.
The system of Third Coast Alabama in northwestern and central Alabama gathers and transports gas. The system connects with the interstate pipelines of Tennessee Gas Pipeline Co. and Southern Natural Gas. Customers include industrial customers, a local gas district, a county gas authority, a gas utility, and producers and gas marketers.