Âé¶¹´«Ã½Ó³»­

Skip to main content

NextEra to buy NET Midstream for US$2.1 billion

 

Published by
World Âé¶¹´«Ã½Ó³»­,

The companies

NextEra Energy Partners LP has announced that it is acquiring NET Midstream Âé¶¹´«Ã½Ó³»­“ a private company with seven gas pipelines in Texas Âé¶¹´«Ã½Ó³»­“ for US$2.1 billion.

NET MidstreamÂé¶¹´«Ã½Ó³»­™s pipelines hold and provide 3 billion ft3/d of shale gas to Texas, with the potential to expand.

The deal

NextEraÂé¶¹´«Ã½Ó³»­™s deal with the seven gas pipelines is said to Âé¶¹´«Ã½Ó³»­œestablish NextEra Energy Partners' presence in the long-term contracted natural gas pipeline space, providing a platform for future growth.Âé¶¹´«Ã½Ó³»­

The pipelines

The 120 mile and 42 in. dia. NET Mexico Pipeline, is the largest of the seven, which delivers gas from the Eagle Ford Shale to the Mexico border. NextEra states that the pipeline is Âé¶¹´«Ã½Ó³»­œstrategically positioned to provide low-cost, US-sourced shale gas to meet the increasing demand of Mexico load centres and growing natural gas markets.Âé¶¹´«Ã½Ó³»­

The Eagle Ford Pipeline Âé¶¹´«Ã½Ó³»­“ the second largest of the lot Âé¶¹´«Ã½Ó³»­“ is approximately 158 miles long, and is Âé¶¹´«Ã½Ó³»­œanchored by a long-term, ship-or-pay commitment from an investment-grade producer.Âé¶¹´«Ã½Ó³»­

Edited from various sources Âé¶¹´«Ã½Ó³»­“ , , , Âé¶¹´«Ã½Ó³»­“ by