Investment funds affiliated with Riverstone Holdings LLC, and Kaiser Midstream, a midstream services company owned by Tulsa, OK, billionaire George B. Kaiser, are partnering with Sage Midstream LLC to form a new company with up to $500 million of equity commitments.
Sage will pursue natural gas liquids (NGL) related midstream opportunities in North America’s liquids-rich production plays, the partners said. The company will pursue greenfield development and acquisition opportunities. No details were provided on what plays might be the first focus of activity.
“The demand for NGL midstream services will continue to grow as North American oil and gas producers continue to expand their development of natural gas liquids,” said Kaiser President John Boone.
Houston-based Sage is led by President Greg Bowles and John Steen, vice president of business development. Bowles was previously executive vice president of Lone Star NGL, a joint venture of Energy Transfer Partners LP and Regency Energy Partners LP. While at Lone Star, Bowles and Steen developed more than $1 billion of NGL infrastructure projects.
“NGL logistics and economics are more important to production plays than ever before,” Bowles said. “The buildout of NGL midstream assets is often critical to the successful, timely execution of production plans.”
Last July Riverstone and Meritage Midstream Services LLC said Riverstone would provide $500 million to a partnership to pursue NGL midstream opportunities in North American resource plays (see Shale Daily, July 20).
© 2024 Natural Gas Intelligence. All rights reserved.
ISSN © 2577-9877 | ISSN © 2158-8023 |