Infrastructure

As part of a major restructuring, Houston-based AEI said Wednesday it is selling interests in 10 operating companies for $4.8 billion, representing 80% of the global energy infrastructure owner/operator’s total assets. As part of the deal, a unit in San Diego-based Sempra Energy separately said it purchased AEI’s interests in two South America electric distribution utilities in which the companies shared part ownership.

Characterizing the rapid rise in shale gas as a surprise to the entire industry, Sempra Energy’s top executive heading its liquefied natural gas (LNG) operations cautioned that the industry’s current game-changer needs to be viewed from both global and historical perspectives. Darcel Hulse, Sempra LNG CEO, told NGI’s Shale Daily that the whole shale gas story still needs to play out.

Apache Corp. has completed the acquisition of BP plc’s oil and gas operations, acreage and infrastructure in the Permian Basin of West Texas and New Mexico (see Daily GPI, July 21). The Houston-based producer paid $3.1 billion to acquire 10 Permian field areas with estimated proved reserves of 141 million boe, first-half 2010 net production of 15,110 b/d of liquids and 81 MMcf/d of gas, and two operated gas processing plants. The transaction also included 1.7 million gross acres in prospective areas of the basin. BP will continue to operate the properties on Apache’s behalf through Nov. 30. Completion of Apache’s acquisition of BP assets in Canada and Egypt is awaiting approvals.

Cheniere Energy Inc. has agreed to sell its 30% limited partner interest in Freeport LNG Development LP to Zachry American Infrastructure LLC, a member of the Zachry group of companies in San Antonio, TX, and Hastings Funds Management (USA) Inc., a subsidiary of Westpac Banking Corp., which is acting on behalf of institutional investors. Net proceeds of about $104 million will be used to pay down a portion of the $400 million, 9.75% term loan held by a Cheniere subsidiary. The transaction is in-line with Cheniere’s strategy of improving its capital structure and reducing debt, the company said, and is expected to close in the second quarter subject to due diligence and regulatory approvals. Freeport LNG Development owns and operates an LNG receiving and regasification terminal on Quintana Island in Texas. Houston-based Cheniere is primarily engaged in LNG related businesses and owns and operates the Sabine Pass LNG terminal and Creole Trail pipeline in Louisiana.

Houston-based EnCap Investments LP and partner Flatrock Energy Advisors, headquartered in San Antonio, have created the EnCap Energy Infrastructure Fund LP with total capital commitments of $791.6 million. The fund is tailored for investments in midstream businesses in North America. The fund managers plan to provide growth capital to “proven” management teams of gathering pipelines, natural gas treatment and processing plants, as well as interstate pipelines and storage. The midstream fund already has committed $215 million to five portfolio energy companies that include Cardinal Midstream and Rangeland Energy.

Cheniere Energy Inc. has agreed to sell its 30% limited partner interest in Freeport LNG Development LP to Zachry American Infrastructure LLC, a member of the Zachry group of companies in San Antonio, TX, and Hastings Funds Management (USA) Inc., a subsidiary of Westpac Banking Corp., which is acting on behalf of institutional investors. Net proceeds of about $104 million will be used to pay down a portion of the $400 million, 9.75% term loan held by a Cheniere subsidiary. The transaction is in-line with Cheniere’s strategy of improving its capital structure and reducing debt, the company said, and is expected to close in the second quarter subject to due diligence and regulatory approvals. Freeport LNG Development owns and operates an LNG receiving and regasification terminal on Quintana Island in Texas. Houston-based Cheniere is primarily engaged in LNG related businesses and owns and operates the Sabine Pass LNG terminal and Creole Trail pipeline in Louisiana.

Houston-based EnCap Investments LP and partner Flatrock Energy Advisors, headquartered in San Antonio, have created the EnCap Energy Infrastructure Fund LP with total capital commitments of $791.6 million. The fund is tailored for investments in midstream businesses in North America. The fund managers plan to provide growth capital to “proven” management teams of gathering pipelines, natural gas treatment and processing plants, as well as interstate pipelines and storage. The midstream fund already has committed $215 million to five portfolio energy companies that include Cardinal Midstream and Rangeland Energy.

Houston-based EnCap Investments LP and partner Flatrock Energy Advisors, headquartered in San Antonio, have created the EnCap Energy Infrastructure Fund LP with total capital commitments of $791.6 million. The fund is tailored for investments in midstream businesses in North America. The fund managers plan to provide growth capital to “proven” management teams of gathering pipelines, natural gas treatment and processing plants, as well as interstate pipelines and storage. The midstream fund already has committed $215 million to five portfolio energy companies that include Cardinal Midstream and Rangeland Energy.

No major infrastructure damage was sustained by San Diego-based Sempra Energy’s natural gas and electric utility infrastructures in the area, nor to its independent natural gas pipeline and liquefied natural gas (LNG) receiving terminal in North Baja California.