Pipeline operator Enterprise Products Partners LP said on Monday it would buy Warburg Pincus-owned Navitas Midstream for $3.25 billion in cash, entering the active Midland basin to tap into increased demand for natural gas infrastructure.
The deal comes as a surge in demand and supply crunches have pushed natural gas prices to record highs. Front-month U.S. gas futures were trading around $4.09 on Monday, over 60% higher than from the start of 2021.
Navitas is expected to reach one billion cubic feet per day of cryogenic natural gas processing capacity once it completes its Leiker plant in Texas in the first quarter of 2022, during which Enterprise also plans to close the deal.
Read more/Source: Reuters
