Howard Midstream Energy Partners LLC, dba Howard Energy Partners (HEP), has executed a definitive purchase and sale agreement with Southwestern Energy Co. (NYSE: SWN) to purchase the company’s northeast Pennsylvania natural gas gathering assets in Bradford and Lycoming counties in Pennsylvania for $500 million. The gathering systems, serving the Marcellus shale region, include 100 miles of natural gas gathering pipeline, with nearly 600 million cubic feet per day of capacity and 53,000 horsepower of compression.
In addition to the existing systems, HEP plans to design, construct, and operate a new natural gas gathering system for Southwestern Energy Co. in Tioga County, Pennsylvania. Once fully operational, the new system is expected to add up to 380 million cubic feet per day of capacity in the area.
The transaction is expected to close in the second quarter of this year. HEP, which is based in San Antonio, Texas, plans to open an office in Pennsylvania upon the transaction's closing.