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M6 Midstream Closes Two Acquisitions in the Haynesville Shale
Friday 23 September 2022

Texas, US-based midstream energy company M6 Midstream has made a final investment decision on its new natural gas gathering and carbon capture project, New Generation Gas Gathering, which will gather natural gas produced in the Haynesville Shale for re-delivery to premium Gulf Coast markets, including LNG export, the company said.

In addition, the company completed the acquisitions of Midcoast Energy's East Texas business from an affiliate of ArcLight Capital Partners, LLC and Align Midstream from Tailwater Capital to establish a leading presence in the Haynesville Shale.

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 m tons per annum of CO2.

The project is expected to commence operations in the second half of 2024.

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 Gulf Coast markets in southeast Texas and the Carthage and Bethel markets in east Texas.

The assets serve a diverse customer base comprised of producers, utilities, end-users and LNG exporters.

Terms of the transactions were not disclosed.

Barclays served as exclusive financial advisor to Momentum on the Midcoast ETX acquisition, and Barclays, Jefferies Finance LLC, Blackstone Credit and Wells Fargo Securities, LLC arranged the acquisition financing.

Jefferies LLC served as exclusive financial advisor to Momentum on the Align acquisition, and Vinson and Elkins LLP served as legal counsel to Momentum on both the Midcoast ETX and Align Midstream acquisitions.

Jefferies LLC and Latham and Watkins LLP advised ArcLight Capital Partners, LLC on the sale of Midcoast. Piper Sandler and Co and Locke Lord advised Tailwater Capital on the sale of Align Midstream.

Momentum is an independent midstream energy company that provides natural gas producers with 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 1m barrels of storage and approximately 500,000 horsepower of compression.
Date Published: 23/09/2022