The assets of the ArcLight Capital Partners-owned Midcoast Energy include 5,833km of gas and natural gas liquid pipelines, six processing plants with a capacity of around 700MMcf/d, seven treating plants, and various liquid logistics assets
Midcoast Energy reportedly strikes deal to sell its pipeline assets in East Texas to Momentum Midstream. (Credit: outgunned21/Freeimages)
Momentum Midstream, a Texan midstream energy company, is reportedly set to acquire pipeline assets of Midcoast Energy in the East Texas area for $1.3bn, including debt.
The assets are part of the Haynesville shale, reported Reuters, citing undisclosed sources having information about the development. In April 2022, the news agency reported that Midcoast Energy is exploring the sale of its East Texas pipelines with an aim to raise about $2bn.
Momentum Midstream, on its website, claimed that since 2004 it has built or acquired over 3,218km of pipeline, 12 processing facilities, three natural gas liquids (NGL) fractionation facilities, and over one million barrels of storage, and more than 260,000 horsepower of compression.
According to the sources, the company’s acquisition of Midcoast Energy’s pipeline assets has the backing of funds from EnCap Flatrock Midstream.
The assets of Midcoast Energy include 5,833km of gas and NGL pipelines and six processing plants with a capacity of around 700 million cubic feet per day (MMcf/d). Besides, the company has seven treating plants and various liquid logistics assets.
Midcoast Energy has been owned by ArcLight Capital Partners since August 2018 after it was acquired by the latter from Enbridge for a price of around $1.1bn in cash.
It provides a variety of midstream services such as gathering, cryogenic recoveries, compressing, CO2/H2S sweetening, dehydrations, condensate stabilisation, and marketing.
In December 2021, Midcoast Energy sold its gas gathering and processing assets in the Anadarko Basin and a 35% operating stake in the Texas Express Gathering pipeline to Producers Midstream II.