First Reserve agrees to acquire 50% stake in Blue Racer Midstream

First Reserve has announced an agreement to purchase Dominion Energy's 50% interest in Blue Racer Midstream, LLC,  a joint venture formed in December 2012 to own, operate, develop and acquire midstream assets in the Utica Shale and certain adjacent areas in the Marcellus Shale.

Blue Racer provides natural gas gathering, compression, dehydrating, treating, processing, fractionation, and transportation services, forming an interconnected midstream business. Its portfolio includes more than 700 miles of gathering pipeline and 800 million cubic feet per day of cryogenic processing capacity. The remaining 50% interest is held by Caiman Energy II, LLC.

The acquisition will be funded in part by equity from First Reserve Fund XIII and investment funds affiliated with First Reserve. Transaction terms were not disclosed.

The transaction is expected to close prior to year-end 2018, subject to regulatory approvals.