Five Point Infrastructure is considering the sale of Delaware Basin-centric Northwind Midstream in a transaction that could total as much as $2 billion, Reuters reported May 19.

Five Point is the private equity owner of Northwind and is working with Piper Sandler on the potential sale, according to anonymous sources. The expected value of $2 billion includes debt. 

The involved parties declined to comment on the story to Hart Energy.

Five Point formed Northwind in 2022. The company focuses on treating sour gas, which can occur in high concentrations in the Delaware, especially in southeastern New Mexico.

Northwind’s Titan Treating Facility sits in southern Lea County, New Mexico, close to the Texas border. The plant can currently handle 150 MMcf/d of sour gas and will add another 50 MMcf/d by the summer.

In March, Northwind announced the next phase of development had reached a final investment decision, with expectations that crude development “is going to triple to quadruple sour gas” in the area over the next three to five years, Northwind CEO Matt Spicer said at the time. The Phase 2 development will expand treatment capacity to 400 MMcf/d by 2026.

Sour gas, or acid gas, is natural gas with a high concentration of hydrogen sulfide and CO2. The gas must be sweetened, typically with amine absorption, before the remaining chemicals can be used.

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