NextEra Energy Partners LP will purchase NET Midstream to gain foothold in the Eagle Ford.
Related: Oil & Gas Deals in the Eagle Ford
NextEra Energy Partners LP announced this month that they are moving forward with a deal to purchase NET Midstream, which will include seven natural gas pipelines in Texas. The $2.1 billion deal will give the company future potential to ship 1billion cubic feet of shale gas a day. The largest asset in NextEra’s acquisition will be pipelines that deliver gas to Mexico under a 20-year contract with Pemex, the state-owned energy company.
Through this deal, NextEra will move into the Eagle Ford by purchasing a pipeline that connects to U.S. and Mexican markets and the Monument Pipeline, along with four smaller lines that supply power plants and households.
Mexico has been anxious to increase its imports for natural gas and has been working lots of deals since the country’s energy reforms were passed last year. Mexico’s current demand for the commodity is currently outstripping its ability to provide the demand.
Read more at nexteraenergyresources.com