Navitas Midstream Partners LLC said Sept. 1 it acquired natural gas gathering and processing assets in the Midland Basin from a subsidiary of Denver-based DCP Midstream LLC. The terms of the transaction weren't disclosed.
The assets serve Martin, Midland and Glasscock counties, Texas. They include about 1,000 miles of low and high pressure natural gas gathering pipelines and a cryogenic processing plant. The plant has capacity in excess of 60 million cubic feet per day.
“We are excited to acquire such an extensive footprint, which is in the core of the Midland Basin and will provide the foundation for additional growth opportunities,” said R. Bruce Northcutt, founder and CEO of Navitas, in a statement.
The Woodlands, Texas-based company plans to revitalize the assets through an extensive capital program designed to improve system capacity and efficiencies, Northcutt said.
"We intend to leverage our management team’s experience in the Permian Basin to find the best solutions for customers,” he said.
The acquisition was financed with equity from Warburg Pincus, Navitas’ private equity sponsor.
Recommended Reading
Gunvor Group Inks Purchase Agreement with Texas LNG Brownsville
2024-03-19 - The agreement with Texas LNG Brownsville calls for a 20-year free on-board sale and purchase agreement of 0.5 million tonnes per annum of LNG for a Gunvor Group subsidiary.
US Expected to Supply 30% of LNG Demand by 2030
2024-02-23 - Shell expects the U.S. to meet around 30% of total global LNG demand by 2030, although reliance on four key basins could create midstream constraints, the energy giant revealed in its “Shell LNG Outlook 2024.”
Venture Global, Grain LNG Ink Deal to Provide LNG to UK
2024-02-05 - Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum of LNG storage and regasification capacity at the Isle of Grain LNG terminal.
Asia Spot LNG at 3-month Peak on Steady Demand, Supply Disruption
2024-04-12 - Heating demand in Europe and production disruption at the Freeport LNG terminal in the U.S. pushed up prices, said Samuel Good, head of LNG pricing at commodity pricing agency Argus.
CERAWeek: JERA CEO Touts Importance of US LNG Supply
2024-03-22 - JERA Co. Global CEO Yukio Kani said during CERAWeek by S&P Global that it was important to have a portfolio of diversified LNG supply sources, especially from the U.S.