Kinder Morgan acquires South Texas natural gas pipeline systems from NextEra Energy for $1.8 billion

(UI) – Kinder Morgan, Inc. closed on its $1.815 billion acquisition of NextEra Energy Partners’ South Texas assets (STX Midstream), which includes a set of integrated, large diameter high pressure natural gas pipeline systems that connect the Eagle Ford basin to key growing Mexico and Gulf Coast demand markets.

The acquisition includes a 90% interest in the NET Mexico pipeline (MGI Enterprises, a PEMEX affiliate, owns the other 10%), Eagle Ford Midstream and a 50% interest in Dos Caminos LLC (Howard Energy Partners (HEP) owns the remaining 50% and will continue to operate the pipeline). Dos Caminos recently placed in service a 62-mile pipeline connecting HEP’s existing midstream pipeline and facilities in Webb County, Texas to KMI’s new Eagle Ford pipeline, which was placed in service on Nov. 1, 2023. This portfolio of assets is highly contracted, with an average contract length of over 8 years. Approximately 75% of the business is supported by take-or-pay contracts.

“We are pleased to add these assets to our natural gas portfolio to serve growing LNG, industrial, Mexico export and power generation demand markets on the U.S. Gulf Coast,” said KMI President of Natural Gas Pipelines Sital Mody. “These assets integrate well with our existing South Texas footprint and extend our direct connectivity in the lean area of the Eagle Ford Basin, allowing us to offer LNG customers greater access to desirable low-nitrogen natural gas supply.”

 

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