Renewable energy firm NextEra Energy Partners, on Thursday, sold its Texas natural gas pipeline portfolio for $1.82 billion in cash to oil and gas firm Kinder Morgan. The firm said the gas pipeline portfolio consists of seven pipelines supplying natural gas to Mexico, as well as to power producers and municipalities in South Texas.
The firm said it received net proceeds of $1.4 billion after extinguishing project-related debt and associated interest rate swaps of about $430 million after receiving approval from Hart-Scott-Rodino antitrust, a law in the US pertaining to mergers and acquisitions of a company.
NextEra Energy Partners said it plans to utilize the remaining net proceeds to fulfill its plan NEP Renewables II buyouts on the specified minimum dates of June 2024 and June 2025, respectively.
This company is a subsidiary of NextEra Energy and it is based in Juno Beach, Florida. The firm focuses on acquiring, managing and owning contract-based clean energy projects in geographically diverse wind, solar and energy storage projects in the U.S. as well as natural gas infrastructure assets in Pennsylvania.
“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 Sital Mody, president of natural gas pipelines at Kinder Morgan.
“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,” added Mody.
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