SemGroup, Gavilon buy out Chesapeakea[euro](tm)s stake in Glass Mountain Pipeline.
11 October 2012 a[euro]" US midstream services firm SemGroup Corp (NYSE:SEMG) and a unit of commodity manager The Gavilon Group LLC announced they equally own all of the stock in Glass Mountain Pipeline LLC after each buying an additional 25% stake from Chesapeake Energy Corp (NYSE:CHK).
Both SemGroup and Gavilon held a 25% stake in the pipeline construction joint venture prior to the transaction. They did not say how much they paid for the additional stakes.
In February 2012, the three companies announced they planned to create a JV for the construction of a 210-mile (338-km) pipeline in western and north-central Oklahoma to provide crude oil to a storage facility in the city of Cushing. In May, the parties announced the completion of the JV and the signing of a definitive deal to build the specific pipeline.
Chesapeake will keep its long-term transportation agreement with the venture following the stake sale. SemGroup and Gavilon noted that the particular pipeline will have an initial daily capacity of around 140,000 barrels and 440,000 barrels of intermediate storage. It will include two laterals, one in each of the Woods and Ellis counties.
SemGroupa[euro](tm)s Rose Rock Midstream LP (NYSE:RRMS) will act as the operator of the pipeline, once its construction is finished.Country: USASector: Petroleum/Natural Gas/CoalTarget: Glass Mountain Pipeline LLCBuyer: SemGroup Corporation, The Gavilon Group LLCVendor: Chesapeake Energy CorporationType: Corporate acquisitionStatus: Closed
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|Publication:||M & A Navigator|
|Date:||Oct 11, 2012|
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