Kinder Morgan is acquiring a Texas natural gas pipeline portfolio from NextEra Energy Partners for $1.82bn (€1.76bn).
The energy infrastructure company said it has agreed to buy STX Midstream, a South Texas pipeline system that includes a set of integrated, large-diameter high-pressure natural gas pipelines that connect the Eagle Ford basin to key growing Mexico and Gulf Coast demand markets. The 462 miles of pipeline gas portfolio is primarily comprised of seven pipelines that provide natural gas to Mexico and power producers and municipalities in South Texas.
The acquisition is expected to be initially funded with cash on hand and short-term borrowings, Kinder Morgan said.
Sital Mody, president of natural gas pipelines at Kinder Morgan, said: “STX Midstream nicely complements our existing assets and will enable us to capture incremental opportunities serving LNG, power generation, LDC customers and exports to Mexico.”
John Ketchum, chairman and CEO of NextEra Energy Partners said the agreement to sell the pipeline portfolio to Kinder Morgan is an “important next step in NextEra Energy Partners’ transition plans”.
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