Kinder Morgan Inc. (KMI) has agreed to acquire NextEra Energy Partners LP’s South Texas natural gas business, South Texas Midstream LLC (STX Midstream), for $1.8 billion.

The STX Midstream system comprises 462 miles of natural gas pipelines with 4.9 Bcf/d of transport capacity connecting the Eagle Ford Shale with growing demand in Mexico and along the U.S. Gulf Coast. 

The system “is highly contracted, with an average contract length over eight years,” KMI said. “Approximately 75% of the business is supported by take-or-pay contracts.” The average contract term is more than eight years with a “favorable renewal outlook,” according to KMI.

[Download Now: In our 2024 Natural Gas Outlook Report ‘Future In Focus’, Natural Gas Intelligence’s experienced team of...