The deal covers seven pipelines that carry gas under ship-or-pay contracts covering a total of 3 bcfd, serving power producers and municipalities in South Texas, processing plants and producers in the Eagle Ford shale, and customers around Houston.
Planned expansions of the three largest pipelines would add 1 bcfd of gas to contracted deliveries.
The properties include:
• The NET Mexico Pipeline, a 120-mile, 42 and 48-in. line delivering gas from the Agua Dulce hub west of Corpus Christi to a Pemex subsidiary, which holds a 10% stake, at the Mexican border.
• Eagle Ford Midstream, 158 miles of large-diameter pipeline in the Eagle Ford play with deliveries to the Agua Dulce hub and access to multiple pipeline interconnects.
• The Monument Pipeline, 156 miles of 16-in. line carrying gas from the Katy hub to city gates of Houston and to the Houston Ship Channel and Galveston County.
• Four smaller pipelines serving power plants and residential customers.
The transaction includes expansion investment of about $300 million in 2016, NextEra said.
NET Midstream is owned 50% by founders Jerry Dearing and Joe Gutierrez and 50% by an affiliate of ArcLight Capital Partners LLC.