Warren Equity Partners said Jan. 22 that it has partnered with Multifuels LP to establish Multifuels Midstream Group headquartered in Houston.
As part of the transaction, Multifuels is contributing an existing natural gas pipeline that supplies a utility service area in Texas. Warren Equity is contributing about $20 million of cash and equity commitments.
Multifuels Midstream Group will own, operate and develop midstream projects in North America, with an emphasis on lateral distribution pipelines. The laterals will transport natural gas from main lines to end users, such as utilities and petrochemical plants, under long-term contracts that are not exposed to fluctuations in the price of oil and gas.
The new midstream company will be led by a seasoned management team that is highly experienced in the development of pipelines, gathering systems and storage assets in the oil and gas industry, the release said.
Randy Gibbs will be the CEO of the company. Dick Robinson, Gil Muhl and Jim Ducote will form the remainder of the management team.
The company will execute on an existing portfolio of development projects capitalizes on the U.S. trend toward to:
- Increased utilization of natural gas in power plants, petrochemical plants and industrial complexes;
- Growth in the number of residential households accessing natural gas through local distribution companies; and
- Increased export opportunities through LNG facilities.
The company’s projects are developed under long-term contracts with strong creditworthy counterparts, according to the release.
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