NextEra to acquire South Texas gas lines

NextEra Energy Partners LP, Juno Beach, Fla., has agreed to acquire natural gas pipelines in South Texas from privately held NET Midstream for $2.1 billion.

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.

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