Southcross Energy Partners, L.P. has acquired natural gas pipelines near Corpus Christi, Texas along with contracts related to those pipelines. The purchase price is approximately $40 million in cash and funds for the acquisition were drawn from Southcross' existing credit facility. The pipelines were acquired from Onyx Midstream, LP and Onyx Pipeline Company.
The pipelines, which range from 12-inches to 24-inches in diameter, transport natural gas to two power plants in Nueces County, Texas under fixed-fee contracts that extend through 2029. Total length of the pipelines is approximately 50 miles. Natural gas volumes through the pipelines averaged 97 million cubic feet per day during 2013. The transaction is expected to be accretive to Southcross' distributable cash flow during 2014.