NET Midstream’s pipeline assets serve power producers and municipalities in South Texas, processing plants and producers in the Eagle Ford Shale, and residential, commercial, and industrial customers in the Houston area, and provide a critical source of natural gas transportation for low cost, US-sourced shale gas to Mexico.
The deal will give NextEra seven natural gas pipelines in Texas, with the capacity to carry 3 Bcf of gas per day, and the potential to expand by an additional 1 Bcf.
The portfolio consists of the NET Mexico Pipeline, the Eagle Ford Pipeline, the Monument Pipeline, and four smaller Texas pipelines that serve a variety of power plants and residential loads.
NextEra Energy Partners will make an initial payment of $US1.8 billion for NET Midstream, which is 50 per cent owned by private equity fund ArcLight Capital Partners. The deal value also includes a $US300 million future investment.
NextEra Energy Partners, which also raised its annual distribution by 12 cents per unit to 94 cents, said it expected the deal to immediately add to its distribution.