Energy Spectrum Exits Eagle Ford Shale Crude Oil & Condensate Gathering, Transportation & Storage System
Energy Spectrum Partners V LP has announced the sale of its and management's membership interests in Velocity South Texas Gathering, LLC, a subsidiary of Velocity Midstream Partners, to Plains All American Pipeline, LP (NYSE: PAA). Velocity's assets include approximately 120 miles of crude oil and condensate gathering and transportation pipelines in the Eagle Ford Shale area of South Texas with a projected throughput capacity of approximately 150,000 barrels per day and an aggregate of 185,000 barrels of condensate storage capacity located at Catarina and the Gardendale Hub, which Velocity conceived. The system, which extends through portions of Dimmit, Webb and La Salle counties, Texas, is underpinned by long-term acreage dedications or volume commitments from several large Eagle Ford producers.
“Energy Spectrum is proud to have partnered with Velocity's management team in the development of such a strategic asset in the prolific Eagle Ford Shale,” said Jim Benson, a Managing Partner of Energy Spectrum Capital. “Velocity's management team envisioned this system well before an opportunity arose and worked diligently to execute on its plan. We are confident that Plains All American is a high-quality, strategic acquirer for this asset and will take it to the next level.”
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