Thu, May 17, 2012 12:27
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Costar Midstream Buys East Texas Gathering Systems and Processing Plants

Texas Business reports:  DALLAS—Costar Midstream LLC acquired more than 500 miles of natural gas gathering pipelines, three cryogenic gas processing plants and associated compression and treating assets located in East Texas in a four county area near Longview.

The assets represent 75 MMcfd of gas processing capacity, 8,000 bpd of NGL fractionation capacity, 20,000 horsepower of compression and 30 MMcfd of gas treating capacity.

The systems provide midstream services to producers of conventional and unconventional gas sources, and allow treating of off spec NGL and condensate production.

“We are excited about this acquisition and the opportunity it presents for further growth,” said Costar managing partner Kevin Sullivan in a prepared statement. 

“We have already identified several capital additions to be made providing additional natural gas and NGL volumes to the plants,” said Dale Singleton in a statement, also a managing partner of Costar. “This acquisition adds to Costar's existing 220 miles of gathering pipelines in the Eagle Ford Shale area of South Texas.”

Costar is a portfolio company of Energy Spectrum Capital and was formed in April 2011 to acquire and develop midstream energy structure infrastructure.