Abu Dhabi’s ePointZero Completes $2.25 Billion Traverse Midstream Acquisition
ePointZero has completed its $2.25 billion acquisition of Traverse Midstream Partners, securing ownership interests in the Rover Pipeline and Ohio River System as it enters the U.S. natural gas infrastructure market.
(P&GJ) — ePointZero has completed its $2.25 billion acquisition of Traverse Midstream Partners, marking the company's first investment in U.S. natural gas infrastructure and giving it ownership interests in two major Appalachian Basin pipeline systems.
The all-cash transaction gives the Abu Dhabi-based energy infrastructure platform a 35% non-operated stake in the Rover Pipeline and a 25% interest in the Ohio River System (ORS), both operated by Energy Transfer. The assets provide natural gas transportation across the Marcellus and Utica shale regions, connecting production to LNG export facilities, power generation markets and industrial customers.
The acquisition marks ePointZero's entry into the U.S. midstream sector and expands its global portfolio of energy infrastructure assets supported by long-term transportation agreements.
Mohamed Hesham, chief executive officer of ePointZero, said the transaction establishes the company's presence in one of the world's largest natural gas markets.
"By securing a significant stake in a premier North American natural gas transportation network, we are acquiring stable, long-term cash flows while establishing a platform for future expansion in North America," Hesham said.
According to the company, the acquired assets are located in the Appalachian Basin, the largest natural gas-producing region in North America. The pipeline systems transport low-cost natural gas from the Marcellus and Utica shale plays to major demand centers, including LNG export corridors, power generation facilities and industrial markets.
John Raymond, founder and executive chairman of Energy & Minerals Group (EMG), said Traverse developed a strategic position in two of the region's most significant pipeline systems during EMG's ownership.
"Traverse established a valuable position in two of the most strategically important natural gas systems in North America, supported by strong fundamentals and growing demand," Raymond said.
J.P. Morgan Securities served as financial advisor to ePointZero, while Evercore and Greenhill & Co., a Mizuho affiliate, advised Traverse on the transaction.