
Midstream is The Word Right Now
It’s already a beautiful week in the neighborhood with news of fresh midstream acquisitions and an announced plan to build a pipeline dedicated to flowing fuel to power rocket ships. The race is picking up pace to build more energy infrastructure to support increasing production of natural gas and meet the growing demand to feed LNG terminals, data centers, and now…space pursuits.
Reese Energy Consulting today starts with the latest, soon-to-be-inked monster acquisition by Tulsa-based Williams. No double-secret news here. The natural gas pipeline giant is said to be putting the “final touches” on a $5.5 billion agreement to add Houston-based Momentum Midstream to its Haynesville-to-Gulf Coast repertoire. Momentum operates 4,000 miles of natural gas pipelines with 6 BCFD of system capacity in this space, including the NG3, and serves 10 LNG terminals and 26 power plants.
Dallas-based producer Matador Resources also operates in the Haynesville while continuing to rev up its midstream engine in the Permian Delaware. The company, which owns a majority stake in San Mateo Midstream, will acquire Cardinal Midstream Partners for $752 million in cash. San Mateo serves as the primary midstream provider for Matador with natural gas, produced water, and oil gathering and transportation systems, in addition to gas processing plants in Texas and N.M. Cardinal operates 145 miles of nat gas pipe across the Delaware to include a 320 MMCFD processing plant and numerous takeaway connections.
And then there’s Elon, whose SpaceX will begin construction in July to build an 8-mile natural gas pipeline to flow liquid methane for launchpad fuel at the company’s Starbase South Texas launch site. More to come on this.