GE expands North America shale footprint, invests in Summit Midstream
GE Energy Financial Services, a unit of GE, is expanding its oil and gas footprint by investing in Summit Midstream Partners, which acquires and develops midstream energy infrastructure in unconventional North American production basins.
"Our investment in Summit Midstream builds on our strategy of partnering with growth-oriented companies with strong management and long-term contracted assets," said Dan Castagnola, a managing director at GE Energy Financial Services in Houston.
"In working with Summit, we are drawing on our experience in many midstream sectors, as well as in unconventional gas,” he added.
GE Energy Financial Services' current midstream equity and debt portfolio totals approximately $2.4 billion.
The company has invested in a midstream master limited partnership, gas storage assets, a LNG regasification terminal and 40,000 miles of gas pipelines, it said.
GE Energy Financial Services is also involved in oil and gas production, from partnerships that own reserves to production platforms.
Summit Midstream's assets include gathering, compression, and dehydration facilities in the core of the Barnett Shale.
In addition, it recently announced the acquisition of South Piceance Basin assets in the Rockies from an Encana Corp. subsidiary.
Summit's Barnett asset, DFW midstream, is a large gas gathering system in the Arlington, Texas, area consisting of approximately 120 miles of 8-30 inch gathering pipeline and nearly 50,000 horsepower of compression.
The Piceance acquisition consists of 260 miles of pipeline and 90,000 horsepower of compression serving multiple customers under long-term contracts.
After completion of the Piceance acquisition, Summit will transport approximately 1 bcf/day of natural gas.
"We're pleased to add GE Financial Services as an owner," said Steve Newby, CEO of Summit. "Their industry depth and financial backing will be beneficial in helping Summit achieve its growth strategy. Between GE and Energy Capital Partners, Summit maintains some of the strongest financial backing in the midstream industry."
Financial details of GE's investment in Summit were not disclosed.
Comments