San Ramon, CA-based energy giant Chevron Corp. (CVX) has entered into a deal with EnLink Midstream Partners LP (ENLK) and EnLink Midstream LLC (ENLC).
Per the deal, Chevron will sell its Gulf Coast natural gas pipeline properties to the midstream energy players for $235 million. However, the transaction is dependent upon certain necessary adjustments. Let us take a closer look at the assets that Chevron has decided to sell.
Bridgeline System: The asset includes natural gas pipeline system spreading over roughly 985 miles in Southern Louisiana. The total transportation capacity of the pipelines is 920,000 million cubic feet per day (MMcf/d).
Sabine System: Sabine System comprises pipeline assets covering about 150 miles in Texas and Southern Louisiana. The pipelines have a total transportation capacity of roughly 235,000 MMcf/d.
Chandeleur System: The properties include pipeline system spreading over 215 miles off the coast of Mississippi and Alabama. The transportation capacity of the pipeline system is roughly 330,000 MMcf/d.
Storage Assets: This includes three caverns in Southern Louisiana having roughly 11 billion cubic feet of working natural gas storage capacity.
The transaction – which is likely to be wrapped up by the fourth quarter of 2014 – awaits regulatory approvals. The completion of the deal is also dependent upon customary closing conditions.
San Ramon, CA-based Chevron is one of the largest publicly traded oil and gas companies in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.
Moreover, Chevron – which is ahead of BP plc (BP) in terms of market capitalization – currently has an oil and gas development project pipeline that is among the best in the industry. The company targets volume growth of 20% by 2017 (from 2013 levels) driven by the big Australian LNG projects (Gorgon and Wheatstone), as well as deepwater developments in the U.S. Gulf of Mexico.
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