Natural Gas Midstream and the Energy Transition

Natural Gas Midstream and the Energy Transition

​RMR features the latest high-point news to keep you to up to date with midstream activities happening in the basins and shale plays that matter to you most.

Here Comes the Sun

As many of the world’s oil and gas giants start to implement carbon-neutral plans by 2040, midstreamers also are integrating renewables to power remote operations, lower costs, and reduce their carbon footprint. Tulsa-based Williams has announced it will add solar power as an energy source to generate electricity at 48 sites in nine states. The company says solar, in addition to natural gas, will be used to power its processing plants, compressor stations and other midstream facilities in Ala., Colo., Ga., La., N.J., N.C., Ohio, Pa., and Va. Williams says the  investment in on-site solar farms will offset the purchase of 350 megawatts of electricity.

Capstone Turbine Back to Work in the Permian Midstream

Calif.-based Capstone Turbine has received a follow-on order for more microturbines from one of the largest oil and gas midstream operators in North America. While its client wasn’t disclosed, Capstone says it will provide another three, stand-alone C65 microturbines for a remote site in the Permian. The company says six of 10 of its largest installed fleets worldwide are oil and gas customers that require reliable power generated by natural gas. To date, Capstone has shipped 10,000 units to 73 countries, saving its customers $253 million in annual energy costs and eliminating 350,000 tons of carbon.

Natural Gas Takes Lead in Energy Transition

The wave of LNG has spurred a natural gas revolution that’s nothing short of remarkable. As nations and developing countries retire coal for clean energy—especially in the global production of electricity—natural gas becomes the perfect partner with renewables like solar and wind power. The EIA has announced that renewable energy consumption now surpasses coal for the first time in more than 130 years. The International Gas Union describes natural gas as “an agent of change in the fight against air pollution,” continuing that gas provides the fastest and most economical path to a less carbon intensive and cleaner air world. The midstream sector plays a starring role in this transition to transport, process, and provide what’s become a dominant energy supply to power the world.

You Might Also Like…

The Money Backers:  KKR & Co.

The Money Backers: KKR & Co.

In RMR’s continuing series The Money Backers, we give readers a glimpse of who’s who and who owns what in energy’s private equity world.  From the largest to the smallest to the newest, we look especially at those firms making hay in the midstream industry to provide the capital infusion required to give growth projects liftoff.

KKR & Co.

KKR & Co. Inc. is an American global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic partners, hedge funds.

During the “buyout boom” of the late 1980s, the biggest news to travel between the lips of Wall Street bankers and the ears of its corporate investors was the $31.1 billion buyout of RJR Nabisco. Drama surrounding the deal and its colorful actors played on magazine covers and front-page headlines as the N.Y.-based KKR investment group collected a $75 million transaction fee and secured its place in high-finance history.

Since then, KKR has risen to the ranks of one of the world’s largest investment firms with offices across the U.S., Europe, the Middle East, Africa, and Asia-Pac. KKR’s investments include oil and gas assets in the upstream sector as well as energy infrastructure across the globe. On the midstream side, the firm continues to shoot for “big” with its latest announcement to buy a 65% equity interest in TC Energy’s Coastal GasLink Pipeline project. The $6.6 billion, 416-mile Coastal GasLink will transport 2.1 BCFD of natural gas from B.C., to an LNG liquefaction and export facility also in B.C. That facility is currently under construction.

Here’s a look at KKR’s midstream portfolio companies in the U.S.:

  • Georgia-based Colonial Pipeline, the largest refined product pipelines in North America. Colonial transports more than 3 MMBbls of gasoline, diesel and jet fuel between the Gulf Coast and the N.Y., harbor area.
  • Genesis Energy, headquartered in Houston, operates four divisions that include offshore pipeline transportation, refinery services, marine transportation, and onshore facilities and transportation in Texas, La., Ark., Miss., Ala., Fla., Wyo., and the Gulf of Mexico.
  • Williams’ Rocky Mountain Midstream, the largest private natural gas gathering and processing and crude oil gathering operations in the DJ Basin. Tulsa-based Williams and KKR acquired these systems from Discovery Midstream in 2018 for $1.2 billion.

Was this article helpful? Let us know what you think.

You Might Also Like…