Kinder Morgan to acquire NextEra’s South Texas assets
US pipeline operator Kinder Morgan said November 6 it has agreed to acquire NextEra Energy Partner’s STX Midstream for $1.815bn.
The STX assets include pipelines connecting the Eagle Ford basin to demand markets along the US Gulf Coast and in Mexico, including a 90% interest in the NET Mexico pipeline. Collectively, the pipeline assets have the capacity to move about 4.9bn ft3/day of natural gas.
The transaction requires clearance under Hart-Scott-Rodino and is expected to close in Q1 2024.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.