Southcross Energy laying natural gas pipeline in Southern Mississippi

Southcross Energy announced on Nov. 4 that the company is constructing an eight-mile, 12-inch natural gas pipeline in Jones County, Miss.

The new pipeline will connect the existing Southcross system with the Southeast Supply Header (SESH) pipeline system.

The interconnect will augment Southcross’ gas supply and enable the company to provide expanded service to its customers in the region, including the South Mississippi Electric Power Association (SMEPA), an electric generation and transmission cooperative. The new pipeline is scheduled to be operational by April 2011.

“We are pleased that Southcross is undertaking this project so we can access additional gas supply for our customers in Mississippi,” said David Biegler, Southcross chairman and chief executive officer.

Southcross operates the largest intrastate natural gas pipeline system in Mississippi, which includes 640 miles of transmission and gathering pipelines.

Crosstex Energy to sell some pipeline assets for $220 million

DALLAS, Texas - Crosstex Energy LP has signed a deal to sell pipeline assets in Mississippi, Alabama and South Texas to Southcross Energy LLC for $220 million.
Crosstex Energy LP, a partnership partly owned by Crosstex Energy Inc., said on June 10 that the money will allow it to satisfy debt reduction targets set by amendments to its debt facilities. The pipeline systems generated gross margin in the first quarter of $12 million, and cost $4 million to operate, the company said.
“These are perfect assets to provide the foundation of our new company,” said David Biegler, chairman and chief executive officer of Dallas-based Southcross Energy.
The Mississippi and Alabama systems being acquired consist of approximately 780 miles of intrastate gathering and transmission pipelines with throughput capacity of about 185,000 million British thermal units per day (MMBtu/d). The South Texas system consists of approximately 1,400 miles of intrastate gathering and transmission pipelines with throughput capacity of about 600,000 MMBtu/d and two processing facilities with a total processing capacity of approximately 195,000 MMBtu/d.