NextEra to buy NET Midstream for US$2.1 billion
Published by Stephanie Roker,
Editor
World Pipelines,
The companies
NextEra Energy Partners LP has announced that it is acquiring NET Midstream – a private company with seven gas pipelines in Texas – for US$2.1 billion.
NET Midstream’s pipelines hold and provide 3 billion ft3/d of shale gas to Texas, with the potential to expand.
The deal
NextEra’s deal with the seven gas pipelines is said to “establish NextEra Energy Partners' presence in the long-term contracted natural gas pipeline space, providing a platform for future growth.”
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 “strategically positioned to provide low-cost, US-sourced shale gas to meet the increasing demand of Mexico load centres and growing natural gas markets.”
The Eagle Ford Pipeline – the second largest of the lot – is approximately 158 miles long, and is “anchored by a long-term, ship-or-pay commitment from an investment-grade producer.”
Edited from various sources – Reuters, Utility DIVE, Bloomberg, Breaking Energy – by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/05082015/nextera-to-buy-net-midstream-for-us2billion/
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