CenterPoint Energy to purchase natural gas assets in Texas

CenterPoint Energy has announced that its subsidiary, CenterPoint Energy Field Services (CEFS), has entered into two deals to purchase gathering and processing assets in northeast Texas, US.

The firm will acquire a 50% stake in the Waskom Gas Processing Company from Prism Gas Systems, and other gas gathering and processing assets from Martin Midstream Partners for $275 million.

CenterPoint has also entered into a 15-year deal with Encana Oil & Gas to gather and treat its natural gas production from the Amoruso and Hilltop fields in Robertson and Leon counties.

In connection with the deal, CEFS acquired Encana’s 139-mile Amoruso natural gas gathering systems for $89m.

CenterPoint Energy field services business division senior vice president and chief commercial officer Bill May said the company has seen a significant increase in producer activity due to the improved economics of producing liquids-rich natural gas in the Cotton Valley field, as well as other nearby formations.

“Waskom provides a competitive outlet for natural gas liquids, including ethane, as well as several take-away options for natural gas including our CenterPoint Energy gas transmission pipeline and direct access to our Perryville Hub,” Bill added.

Some of the other assets to be acquired from Prism include the Woodlawn gathering system with a capacity of 30 million cubic feet per day and the McLeod, Hallsville and Darco gathering systems that treat more than 40 million cubic feet of natural gas per day.