CenterPoint Energy has entered into an agreement with OGE Energy and ArcLight Capital Partners to form an $11bn midstream partnership.
Under the midstream partnership, CenterPoint’s interstate pipelines and field services businesses will be combined with the assets of OGE and Arclight owned midstream business, Enogex.
The partnership will be managed by a general partner whose governance will be shared by CenterPoint Energy and OGE on a 50/50 basis.
The new partnership will own and operate 8,400 miles of interstate pipelines with a transportation capacity of 9 billion cubic feet (BCF)and 2,300 miles of intrastate pipelines.
The company will also have over 11,000 miles of gathering lines, more than 90BCF of natural gas storage capacity and 11
processing plants with about 2BCF inlet capacity.
OGE Energy chairman and CEO Pete Delaney said the partnership will benefit all the shareowners.
"The stronger financial and operational capabilities of the new partnership should allow us to realize the full potential of these assets," Delaney added.
It is expected that the new midstream company will benefit from the improved scale of assets, geographic diversification and operations in major natural gas and liquids-rich producing areas and asset position in a wide range of basins.
The company will also take advantage of the improved supply and market access, operational and commercial synergy, predictable and stable cash flow, and independent access to capital.