An Abu Dhabi investor announced late Tuesday that it is taking a stake in two major natural gas pipelines that operate across and between the Upper Midwest and Canada.
The investor, E Point Zero said it has agreed to pay $2.25 billion for Oklahoma-based Traverse Midstream Partners. E Point Zero Holding is a subsidiary of Two Point Zero, an investment platform headed by Sheikh Tahnoon bin Zayed Al Nahyan.
Traverse Midstream is a portfolio company of Houston-headquartered private equity firm Energy and Minerals Group that owns a 25 percent non-operating interest in the Ohio River System and a 35 percent non-operating interest in the larger Rover Pipeline.
Weil is advising EMG and Traverse with a team led from Houston by Omar Samji with Humzah Yazdani (Houston), Matthew Kim (Houston), Steven Lorch (New York), Carla Hine (Washington, D.C.), Shawn Cooley (Washington, D.C.), Colin Cox (Dallas) and Manpreet Kaur (New York).
Rover is a 710-mile system, owned and operated by Dallas-based Energy Transfer Partners, that moves natural gas through and from processing plants in Western Pennsylvania, Eastern Ohio and West Virginia for delivery to markets in the U.S. and Canada.
The recently constructed Ohio River System is a 52-mile, 36-inch pipeline system designed to gather natural gas production from Utica and Marcellus production areas.