Firms consider sale of US shale gas pipeline: press
Investment firm Stonepeak Infrastructure Partners and midstream company Targa Resources are mulling the sale of their minority stake in the Gulf Coast Express natural gas pipeline, the Reuters news service reported November 15.
The 530-mile Gulf Coast Express pipeline in Texas has a transit capacity of 2bn ft3/d of gas sourced from the Permian shale basin. The two partners are considering the sale of their 25% stake in the pipeline in a deal that Reuters estimated would be valued at more than $750mn.
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“Pipeline companies regularly sell stakes in assets they own, as a way of raising cash to spend on new projects and improve their financial position,” the report read.
None of the parties to the rumoured deal had comments and the source for the news service stressed that no sale was imminent.
Targa helped finance pipeline development in 2018 and the line started service the following gyear. Gulf Coast Express and Kinder Morgan are among the other pipeline owners.