M6 Midstream Announces Final Investment Decision and Completes Two Acquisitions to Establish a Leading Presence in the Haynesville Shale
Board of Directors has reached Final Investment Decision on its New Generation Gas Gathering project, which will initially provide 1.7 Bcf/d of capacity from the
Haynesville Shaleto the growing Gulf Coastand LNG markets.
- Project includes carbon capture and sequestration component that will remove 100% of the CO2 and permanently store it underground, creating a net negative carbon footprint.
Recently closed two significant acquisitions:
East Texasbusiness (“Midcoast ETX”), an extensive gathering and transportation system with 1.5 Bcf/d of current volume and 1.0 Bcf/d of existing deliverability to the Gulf Coastand LNG markets.
- Align Midstream, which owns several gathering systems adjacent to Midcoast with current volumes of 600 MMcf/d.
- Midcoast Energy’s
With the final investment decision, the natural gas gathering and carbon capture project will have an initial capacity of 1.7 Bcf/d and is expandable to 2.2 Bcf/d and will also capture and permanently sequester up to 2.0 million tons per annum of CO2. The project is expected to commence operations in the second half of 2024.
“With significant long-term volume commitments from several leading
With the combined assets of Midcoast ETX and Align Midstream, Momentum is currently servicing volumes in excess of 2.0 Bcf/d across a footprint including approximately 3,000 miles of gathering pipelines, 1.5 Bcf/d of treating capacity, 700 MMcf/d of processing capacity, 200,000 HP of compression and 820 miles of transportation pipelines delivering gas to the
“Pairing the extensive footprints of the Midcoast and Align assets with NG3, Momentum is able to relieve existing constraints in the
“We have been closely associated with the management team at Momentum for more than three decades and are incredibly proud to help accelerate their plans to establish a leading presence in the
Terms of the transactions were not disclosed.
Barclays served as exclusive financial advisor to Momentum on the Midcoast ETX acquisition, and Barclays,
Momentum is an independent midstream energy company that provides natural gas producers with flexible, responsive and reliable services to link the wellhead to the market. Since 2004, Momentum has developed or acquired more than 5,000 miles of pipeline, 18 processing facilities, three NGL fractionation facilities, over 1 million barrels of storage and approximately 500,000 horsepower of compression. The Company’s core focus is building high-quality greenfield projects and acquiring natural gas assets in growing