Energy Capital Partners has formed Summit Midstream Partners, which focuses on acquiring and developing a portfolio of midstream energy infrastructure assets located in traditional and
Energy Capital Partners has formed Summit Midstream Partners, which focuses on acquiring and developing a portfolio of midstream energy infrastructure assets located in traditional and emerging North American production basins and import centres.
Summit has acquired of 75 per cent of DFW Midstream Services from a subsidiary of Energy Future Holdings. DFW Midstream has acquired natural gas gathering assets located in the Barnett Shale from Chesapeake Energy Marketing, a division of Chesapeake Energy Corporation.
DFW Midstream has signed long-term gas gathering agreements with affiliates of CHK, XTO Energy and Carrizo Oil & Gas, who are among the largest producers of natural gas in the Barnett Shale.
With the completion of these acquisitions, Summit Midstream now owns 75 per cent of DFW Midstream, with the other 25 per cent retained by Energy Future Holdings.
DFW Midstream will focus on the development, construction and operation of a natural gas gathering system that is located in the core of the Barnett Shale. To date, DFW Midstream has developed approximately 25 miles of gas gathering pipelines and plans to build approximately 60 miles of additional gas gathering lines over the next 12 months.
"We are excited to launch Summit and broaden our involvement in North America’s midstream energy sector," says Tom Lane a partner at ECP. "The DFW Midstream acquisition assures that Summit will hit the ground running with a unique footprint in the Barnett Shale and a terrific partner in EFH.’
Steve Newby, president and chief executive of Summit, says: "The DFW Midstream acquisition is a great first step in our mission to build a premier midstream energy business. We are excited about the relationship with our producer partners and about providing critical natural gas infrastructure to this traditionally underserved, urban environment. This transaction highlights the powerful combination of Summit’s sector experience with Energy Capital Partners’ strong capital position and energy infrastructure expertise."
