Energy Transfer Partners has announced that its wholly owned subsidiaries, Energy Transfer Interstate Holdings (ETIH) and ET Rover Pipeline (HoldCo), have signed an agreement with funds managed by Blackstone Energy Partners and Blackstone Capital Partners whereby Blackstone will contribute approximately US$1.57 billion in cash in exchange for a 49.9% interest in HoldCo.
HoldCo owns a 65% interest in Rover Pipeline LLC. HoldCo and Rover Pipeline LLC are constructing the Rover Pipeline and will be the operator of the pipeline once in service.
Upon completion, the Rover Pipeline will be an approximately 700 mile pipeline designed to transport 3.25 billion cubic feet of natural gas per day from the Marcellus and Utica Shale production areas to markets across the United States as well as into Union Gas Dawn Hub in Ontario, Canada for redistribution back into the United States or into the Canadian market.
The Blackstone investment will reimburse ETP for its pro rata share of the construction costs incurred by ETP through the closing date in connection with the Rover Pipeline, specified amounts of future construction costs and certain additional payments to ETP. ETP plans to use the proceeds to pay down debt and help fund its current growth projects, thereby greatly reducing its equity issuances. The transaction is expected to close in the fourth quarter of 2017, subject to customary closing conditions.
Upon closing, HoldCo will be owned 50.1% by Energy Transfer and 49.9% by Blackstone.
Latham & Watkins LLP acted as legal counsel to ETP. Vinson & Elkins acted as legal counsel to Blackstone. Blackstone was advised by Intrepid Partners LLC and by Morgan Stanley & Co. LLC, who was also the sole provider of the committed debt financing.
Pearl Energy Investments has announced that it held its first and final closing of Pearl Energy Investments II, L.P. at its hard cap with total commitments of US$600 million.
Read moreSouthern Company subsidiary Southern Power has announced the acquisition of its fifth Texas wind project, the 148-megawatt (MW) Cactus Flats Wind Facility, from Renewable Energy Systems Americas Inc. (RES).
Read moreIberdrola's US subsidiary AVANGRID Renewables and Austin have entered into an agreement for the long-term sale of power for the city of Austin (Texas).
Read moreDeepwater Wind has unveiled plans for its newest project off the American coast: Revolution Wind, a utility-scale offshore wind farm paired with an energy storage system.
Read moreCypress Creek Renewables, an integrated renewable energy firm, has secured a US$450 million facility from a consortium of investors including Temasek. Proceeds will be utilized to support the ongoing development, construction and acquisition of solar assets located throughout the United States.
Read more