SemStream, L.P. announced today that it has closed on its second acquisition in Arizona effective June 1, 2007. The Arizona Corporation Commission approved the purchase of the Page, Arizona, propane assets of Black Mountain Gas Company by SemStream on May 8, 2007.
Black Mountain is a wholly owned subsidiary of Southwest Gas Corporation.
The assets acquired from Black Mountain consist of a regulated underground pipeline system with 63 miles of pipe, approximately 129,000 gallons of bulk storage and related assets serving 1,350 retail customers in Page, Arizona. The acquisition also includes non-regulated propane assets used in the sale of propane to customers in the rural areas outside of Page. The non-regulated business serves approximately 650 additional customers. The purchase and sale agreement between SemStream and Black Mountain was signed on September 20, 2006, but the sale and purchase required regulatory approval from the Arizona Corporation Commission as a prerequisite to closing.
Larry Payne, SemStream president and chief operating officer, said that this acquisition adds important assets in the southwestern U.S. to SemStream’s portfolio and nicely complements its existing Arizona assets. He also said that the business is being added to the existing SemStream Arizona Propane operations, and the employees who previously ran the business for Black Mountain have accepted positions with SemStream.
SemStream, L.P., a subsidiary of SemGroup, L.P., is a North American midstream business providing natural gas liquids supply, marketing, storage and terminal services through 11 privately owned propane terminals.