Howard Expands Oklahoma-to-Gulf Coast Gas Network
Howard Energy Partners has expanded its Midcontinent natural gas platform through two acquisitions that add pipeline, gathering and processing assets connecting production areas to growing Gulf Coast demand markets.
(P&GJ) — Howard Energy Partners (HEP) has expanded its Midcontinent natural gas platform through two recent transactions, acquiring full ownership of the Midship Pipeline and purchasing Tulsa-based gathering and processing operator Superior Midstream.
The Midship transaction, completed May 29, gives HEP 100% ownership of the 36-inch, approximately 200-mile FERC-regulated natural gas pipeline serving Oklahoma's SCOOP and STACK plays. The pipeline transports natural gas from production areas in the Anadarko Basin to downstream markets, including Gulf Coast demand centers.
HEP previously acquired an operating interest in Midship earlier this year and said the system has experienced record throughput and utilization since the company assumed operatorship. The pipeline also has the capability to move gas in either direction, providing operational flexibility as market conditions evolve.
Separately, HEP completed its acquisition of Superior Midstream on May 1. The transaction adds approximately 3,700 miles of natural gas gathering pipelines and associated processing infrastructure across Oklahoma, Kansas, the Texas Panhandle and East Texas.
The combined assets strengthen HEP's position across the Midcontinent and create additional connections between natural gas production, processing and major demand markets, including LNG export facilities, power generation and industrial customers.
"Midship is a critical asset connecting Midcontinent production to growing Gulf Coast and Southeast demand markets," Chairman and CEO Mike Howard said in a statement. He added that the Superior acquisition expands the company's gathering and processing footprint while creating operational synergies with the pipeline system.
Financial terms of the transactions were not disclosed.