Southcross Energy Partners LP (NYSE: SXE) has acquired natural gas pipelines in Texas for $40 million.
Southcross also purchased the contracts related to those pipelines, which are located near Corpus Christi, Texas. Onyx Midstream LP and Onyx Pipeline Co. sold the assets.
The pipelines, which are about 50 miles long, transport natural gas to two power plants in Nueces County, Texas.
Dallas-based Southcross focuses on natural gas gathering, processing, treating, compression and transportation services, as well as natural gas liquids fractionation and transportation.
M&A in the energy sector is booming. In March, Memorial Production Partners LP (Nasdaq: MEMP) picked up oil and gas propertiesin Texas for $35 million. Also in March, Mid Con Energy Partners LP (Nasdaq: MCEP) bought oil properties in Oklahoma and Texas for $41 million.
Private equity firms are also looking to invest in the sector, and several have closed energy-focused funds recently. In March, Kohlberg Kravis Roberts & Co. (NYSE: KKR) closed a $2 billion energy fund. In February, Pine Brook closed a $2.43 billion fund, that will focus on the energy and financial services sectors.
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