March 2016, Vol. 243, No. 3
In The News
New Pipeline Company Targets Increased Use of Natural Gas
Warren Equity Partners, a middle market private equity firm, is partnering with Multifuels, L.P. to build a midstream pipeline platform based in Houston. As part of the transaction, Multifuels, L.P. is contributing an existing natural gas pipeline that supplies a utility service area in Texas, and Warren Equity is contributing $20 million of cash and equity commitments.
Multifuels Midstream Group will own, operate and develop midstream projects in North America, with an emphasis on lateral distribution pipelines. These laterals will transport natural gas from main lines to end users, such as utilities and petrochemical plants, under long-term contracts that are not exposed to fluctuations in the price of oil and gas.
Randy Gibbs will be CEO with Dick Robinson, Gil Muhl and Jim Ducote forming the rest of the management team. A news release said the company has an existing portfolio of development projects designed to capitalize on the movement toward increased utilization of natural gas in power plants, petrochemical plants and industrial complexes; growth in the number of residential households accessing natural gas through local distribution companies; and increased export opportunities through LNG facilities.
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