Regency Energy Partners LP (NYSE: RGP) is buying Southern Union Gathering Co. LLC for $1.5 billion.

Southern Union owns Southern Union Gas Services LLC. The company was owned by Energy Transfer Equity LP (NYSE: ETE) and Energy Transfer Partners LP (NYSE: ETP).

The deal should expand Regency’s presence in the Permian Basin. The deal includes a 5,6000-mile gathering system and processing and treating facilities in Texas and New Mexico for natural gas and natural gas liquids.

Dallas-based Regency specializes in processing, treating, transporting and storage of natural gas and natural gas liquids.

J.P. Morgan (NYSE: JPM) acted as Regency’s financial adviser, while Locke Lord LLP handled legal matters. Evercore Partners acted legal counsel to Regency’s conflicts committee, while Akin Gum Strauss Hauer & Feld LLP provided legal counsel.

Energy industry