American Midstream Partners LP announced April 4 that one of its subsidiaries has received approval from the Federal Energy Regulatory Commission to place the Midla Natchez Pipeline into service.
Approval to construct the Midla Natchez Pipeline was granted in December 2015. The 55-mile, 12-in. pipeline extends from Winnsboro, Louisiana, to Natchez, Mississippi, with capacity to deliver 50 million cubic feet per day (MMcf/d). The pipeline is supported by multiple, long-term firm transportation agreements with key customers. The pipeline has three receipt points from Locust Ridge Gas Co., Columbia Gas Transmission and Tennessee Gas Pipeline. There are twelve delivery points to local distribution and manufacturing facilities including Louisiana Municipal Gas Authority, BASF Corp. and ATMOS Energy Corp. The project was financed with $60 million of 3.77 percent senior secured notes due June 30, 2031, that were issued by subsidiaries of the American Midstream in September 2016.
“This $60 million project was undertaken as a commitment to provide safe and reliable energy transportation service to our customers and to the communities we operate,” said Lynn Bourdon, president and CEO of American Midstream. “Additionally, this project will provide the ability to deliver new and incremental volumes to existing and future customers, developing a foundation for further growth in the region. With line fill underway, we are excited to commence service and begin deliveries to our customers in the near future.”
American Midstream provides midstream infrastructure that links producers of natural gas, crude oil, NGLs, condensate and specialty chemicals to end-use markets. The company’s assets are strategically located in some of the most prolific onshore and offshore basins in the Permian, Eagle Ford, East Texas, Bakken and Gulf Coast. American Midstream owns or has an ownership interest in approximately 4,000 miles of interstate and intrastate pipelines, as well as ownership in gas processing plants, fractionation facilities, an offshore semisubmersible floating production system with nameplate processing capacity of 80,000 barrels per day (bpd) of crude oil and 400 MMcf/d of natural gas; and terminal sites with approximately 6.7 million barrels of storage capacity.