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Responding to the rapid growth of natural gas production from the Marcellus Shale, UGI Corp. said it plans to invest approximately $300 million over the next two years in midstream projects to support the development of natural gas infrastructure in the region.

Kohlberg Kravis Roberts & Co. (KKR) agreed Monday to invest up to $400 million in Hilcorp Resources Inc., a newly formed partnership created to own and develop 100,000 net acres in the Eagle Ford Shale trend of South Texas leased by privately held Hilcorp Energy Co.

With prices staying persistently low, now may be the best time to invest in long-term natural gas contracts, according to Paul Corby, senior vice president of Planalytics.

With prices staying persistently low, now may be the best time to invest in long-term natural gas contracts, according to Paul Corby, senior vice president of Planalytics.

GE Energy Financial Services plans to invest $150 million to acquire a one-third interest in the Gulf LNG Clean Energy Project, a liquefied natural gas (LNG) receiving terminal under construction by El Paso Corp. in Mississippi.

GE Energy Financial Services plans to invest $150 million to acquire a one-third interest in the Gulf LNG Clean Energy Project, a liquefied natural gas (LNG) receiving terminal under construction by El Paso Corp. in Mississippi.

GE Energy Financial Services plans to invest $150 million to acquire a one-third interest in the Gulf LNG Clean Energy Project, a liquefied natural gas (LNG) receiving terminal under construction by El Paso Corp. in Mississippi. Gulf LNG, which is adjacent to the Pascagoula Bayou Casotte Ship Channel, is scheduled for completion in 2011 at a cost of around $1.1 billion (see NGI, Nov. 9, 2009). The facility, which is fully contracted, is to have 6.6 Bcf of storage and be capable of 1.3 Bcf/d sendout. El Paso owns a half stake in the facility, and a subsidiary is managing construction and would be the operator (see NGI, Feb. 11, 2008). The GE business unit would acquire Houston-based Crest Group’s 30% interest. Sonangol, Angola’s national oil company, also has a 20% interest in the project.

Rex Energy Corp. and Stonehenge Energy Resources LP have formed a midstream joint venture (JV), Keystone Midstream Services LLC, that will initially invest up to $25 million to build a high-pressure gathering system and cryogenic gas processing plant in Butler County, PA. State College, PA-based Rex Energy owns 40% of Keystone Midstream and has contributed to its existing gathering system in Butler County. Stonehenge owns 60% of the JV and has contributed its 40 MMcf/d Sarsen cryogenic gas plant. In conjunction with the formation of the JV, Rex Energy has entered into a gathering and processing agreement in which it has reserved 20 MMcf/d of the Sarsen plant’s capacity in 2010 and 40 MMcf/d thereafter. Westminster, CO-based Stonehenge, a portfolio company of private equity firm Energy Spectrum Capital, will manage the operations of Keystone Midstream. Rex Energy is an independent oil and gas company operating in the Illinois and Appalachian basins.

NiSource Inc. may spend as much as $1.2 billion on a pair of pipelines by 2016 and look to partners to invest another $500 million in an effort to increase capacity out of the Marcellus Shale, the company said Thursday.