Back in May, the world’s largest utility company built in America and based in Fla., announced its intention to focus solely on 100% renewable energy generation. NextEra Energy had been heading in that direction for some time, so its new go-forward wasn’t all that surprising. The company introduced the state’s first nuclear power reactor to generate electricity in 1972 when it was then known as Florida Power & Light, going on to become the nation’s largest producer of wind and solar, then further adding nuclear power to its energy mix.
Reese Energy Consulting today is following the latest from NextEra, which laid out its strategy last Spring to achieve not net-zero but “real zero” carbon emissions in 2025. This meant waving so long to its natural gas pipeline systems in Pa., and South Texas. Houston-based Kinder Morgan was paying close attention.
The midstream giant will now gladly help NextEra in its pursuits—along with those of its own—by taking the Texas assets for $1.8 billion. The deal for NextEra’s STX Midstream gives KM major oomph in in the Eagle Ford, adding 462 miles of pipelines and connections to multiple pipeline systems, including its own, that flow natural gas to Gulf Coast markets, LNG terminals, and Mexico. Assets include Eagle Ford Midstream and its 158-mile pipeline to the Agua Dulce Hub, along with a 90% stake in the 124-mile NET Mexico pipeline that moves Eagle Ford gas supplies to the border. Kinder Morgan in 3Q reported near completion to expand capacity on its Tejas pipeline, which will transport 2 BCFD from the Eagle Ford to Gulf Coast markets.
For those interested in the Meade pipeline system in Pa., NextEra’s holding on to that Marcellus jewel until 2025.