Kinder Morgan has closed the $1.81bn acquisition of South Texas assets from Nextera Energy Partners, enhancing its natural gas pipeline network.
The assets, known as STX Midstream, include a network of integrated, high-pressure pipelines connecting the Eagle Ford basin to markets in Mexico and the Gulf Coast.
Kinder Morgan, which signed the deal in November, said the combined daily transportation capacity of the pipelines is 4.9 billion cubic feet.
STX Midstream owns a 90% stake in the NET Mexico pipeline, and the remaining 10% is held by MGI Enterprises, an affiliate Mexican state-owned company PEMEX.
Additionally, through STX Midstream, Kinder Morgan has obtained an interest in Eagle Ford Midstream and a 50% share in Dos Caminos.
Eagle Ford Midstream is a 254 km residue pipeline connecting the Eagle Ford basin to the Agua Dulce Hub in Nueces County, Texas.
Dos Caminos, with Howard Energy Partners (HEP) as the owner of the remaining 50% stake and the operator, recently inaugurated a ~100km pipeline that connects Kinder Morgan’s new Eagle Ford pipeline to HEP’s existing midstream pipeline and facilities in Webb County, Texas
Kinder Morgan anticipates that this strategic acquisition will contribute positively to its preliminary 2024 budget guidance.
Kinder Morgan president of natural gas pipelines Sital Mody said: “We are pleased to add these assets to our natural gas portfolio to serve growing [liquified natural gas] LNG, industrial, Mexico export and power generation demand markets on the US Gulf Coast.
“These assets integrate well with our existing South Texas footprint and extend our direct connectivity in the lean area of the Eagle Ford Basin, allowing us to offer LNG customers greater access to desirable low-nitrogen natural gas supply.”
NextEra Energy chairman and CEO John Ketchum said: “The completion of this sale is an important step in NextEra Energy Partners’ transition plans.
“With the Texas natural gas pipeline portfolio sale complete, the partnership has sufficient proceeds available to address the equity buyouts of the STX Midstream and NEP Renewables II convertible equity portfolio financings.”
