Delaware-based American Midstream Partners acquired the Gonzales County midstream system in Southeast Texas and an option for a majority stake in an Eagle Ford midstream facility.

The two deals were made with an affiliate of Boston-based ArcLight Capital and are potentially worth up to $310 million.

American acquired the Gonzales system Monday.

The price tag will not exceed $110 million and the deal is expected to close in late 2014 or early 2015.

Arclight estimated the total cost of construction at $100 million.

Gonzales’s initial phase will be operational in the fourth quarter of 2014 and the full system is slated to begin operations in the first quarter of 2015.

The system will include saltwater disposal capabilities and full-well-stream gathering and treating infrastructure to manage oil, gas, and water production.

It will have a capacity of approximately 95,000 barrels per day of crude oil and water and 15 million cubic feet per day of natural gas.

American has signed a long-term, fee-based agreement to provide midstream services to Denver-based independent upstream company Forest Oil Corporation.

American also signed an option agreement to acquire a 50 percent interest in the Eagle Ford midstream facility owned by Republic Midstream, an Arclight affiliate.

Arclight has committed $400 million to the Republic project.

American can acquire a 50 percent stake for approximately $200 million when the project begins operation in the first half of 2015.

The Republic facility has a crude oil gathering system, central delivery terminal complex, and an intermediate takeaway pipeline to serve Pennsylvania-based Penn Virginia’s Eagle Ford Shale plays.

Republic will provide midstream services to Penn Virginia under a long-term, fee-based transportation agreement.


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