BG Group announced that it has signed a definitive agreement with Azure Midstream Energy, LP (Azure) for the sale of its entire holding in TGGT - a joint venture midstream company operating in east Texas and north Louisiana, USA. BG Group will receive a net cash consideration of $231 million along with a $17 million stake in Azure, equating to an approximate 4% equity holding, for its entire 50% equity holding in TGGT.
BG Groupís sale of its interests in TGGT is aligned with a key strategic commitment to more actively manage its portfolio as the company focuses on its core strengths of exploration and production and LNG. Completion of the deal is expected by the end of the year, subject to relevant regulatory approval and other customary conditions.
TGGT is a 50/50 BG Group and EXCO Resources joint venture company which owns and operates natural gas gathering and treating assets in three main systems focused on production from the Haynesville, Bossier and Cotton Valley shale gas formations across east Texas and north Louisiana. EXCO Resources will sell its entire 50% equity holding in TGGT to Azure, under the same terms, in the same transaction. In aggregate, including amounts required to settle TGGT debt and credit balances and other closing adjustments, the total consideration for the sale of TGGT to Azure by BG Group and EXCO Resources is approximately $910 million.