NextEra Energy Partners LP completed the acquisition of NET Midstream, the clean energy limited partnership said Oct. 5. NET Midstream develops, owns and operator a portfolio of seven long-term contracted natural gas pipeline assets in the Eagle Ford Shale.

The pipelines serve power producers, processing plants and municipalities in South Texas and Houston-area residential, commercial and industrial customers. The NET Mexico Pipeline, the largest pipeline in the portfolio, transports low-cost domestic shale gas to Mexico under a 20-year ship-or-pay contract with a subsidiary of Mexico’s Pemex Gas y Petroquimica Basica. The NET Mexico Pipeline is 10% owned by a Pemex subsidiary.

The combined acquisition portfolio includes 3 billion cubic feet per day (Bcf/d) of ship-or-pay contracts and long-term contracted assets with a 16-year average contract life. The three largest pipelines have planned growth and expansion projects that, if completed, will provide about 1 Bcf/d of additional contracted volumes, NextEra said.

The total transaction value was about $2.1 billion, including $934 million in cash consideration and assumption of about $654 million in existing debt. Of the total, about $500 million will be deferred, with $200 million payable 18 months after closing.

Up to $200 million will be payable for certain expansion projects when certain finance and capex conditions are met. The $300 million for the expansion projects will be funded almost entirely with incremental future debt. NextEra said the acquisition will contribute adjusted EBITDA between $145 million and $155 million.

Wells Fargo Securities was NextEra’s financial adviser. Locke Lord was its legal counsel.

NextEra also said it closed $600 million in term loans, completing the financing for the NET Midstream acquisition and the acquisition of the Jericho Wind Energy Center in Ontario.

NextEra Energy Partners LP is based in Juno Beach, Fla.