NextEra acquires NET for $2.1 billion

NextEra Energy will acquire natural gas pipeline and marketing company NET Midstream for $2.1 billion, according to a statement the Florida-based power utility released Wednesday.

As part of the deal, NextEra will absorb NET Midstream’s seven gas pipelines in Texas, with a combined capacity of 3 bcm (106 bcf). These pipelines service companies generating power and municipalities located in South Texas. The biggest of the seven is the 193-kilometre NET Mexico pipeline that delivers gas to the Mexican border from the Eagle Ford shale formation.

The move represents a bid by NextEra to enter the US natural gas market and will allow the company to supply Mexico’s increased demand for gas. Expected expansions to three of the largest pipelines will tack on an additional 1 bcm (35.3 bcf) of capacity.

“[This deal] establishes NextEra Energy Partners’ presence in the long-term contracted natural gas pipeline space, providing a platform for future growth,” the company said in a press release.

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