100% ownership is the name of the game this first week of 2023 with news of two large natural gas players announcing or teasing billion-dollar deals between their respective private equity partners.
Reese Energy Consulting today is following the latest from NGLs producer and transporter Targa Resources, which will shell out $1.05 billion to Blackstone’s energy arm for the remaining 25% interest in the Grand Prix NGL Pipeline. With a capacity of up to 1 MMBPD, the 1,200-mile Grand Prix stretches from N.M., across the Permian and into Okla., terminating at Targa’s fractionation and storage complex in Mont Belvieu, Texas. The pipeline began operations in 2019 at an estimated cost of $1.3 billion and achieved record volumes in 2022.
Murmurs of an impending, all-cash deal between Houston-based TG Natural Resources and Quantum Energy Partners have also lit up headlines. The reported $4.6 billion acquisition by TG—which is 70% owned by Tokyo Gas—of Quantum’s Rockcliff Energy would significantly expand TG’s footprint in the Haynesville with an added 270,000 net acres in East Texas and 1 BCFD of production. TG currently operates 188,000 net acres in East Texas and Northern La., with 330 MMCFD of production.