GE Buys into Eagle Ford Gathering
Friday, March 16, 2012
GE Energy Financial Services has acquired a 30.6% stake in Howard Energy Partners, which owns and operates 280 mi. (450 km) of gas pipelines in the Eagle Ford Shale of South Texas, U.S.A.
Also buying into Howard Energy were Crosstex Energy LP, Quanta Services Inc. and Clear Springs Energy Co. The transaction is expected to close in April, subject to regulatory approvals.
Howard Energy will use the funds to partially finance its acquisition of Meritage Midstream Services assets in South Texas. The 185 mi. (300 km) of Meritage pipelines includes the Eagle Ford Escondido gas gathering system and the Cuervo Creek wet gas gathering system. Howard Energy, based in San Antonio, Texas, U.S.A., said it would expand both.
The acquisition will give Howard Energy 450 mi. (725 km) of gathering pipelines in Webb, Dimmit, Frio, Maverick and Zavala counties in Texas. These systems gather more than 175 MMcfd (5 x106 m3/day).
GE Energy Financial Services has US$3 billion of investments in North American midstream assets. They include 43,500 mi. (70,000 km) of gas pipelines, distribution lines, gathering and processing, storage, terminals, refining, master limited partnerships and liquefied natural gas.
For more information: www.geenergyfinancialservices.com