SK joins consortium to invest in U.S. natural gas processor
Published: 28 Mar. 2019, 20:26
Total investment in the U.S. natural gas gathering and processing company will exceed $300 million with the participation of Samsung Securities, Mirae Asset Daewoo securities and the private equity firm First Reserve Corporation.
A gathering and processing company handles midstream processes in the energy business, meaning transportation, storage and wholesale marketing.
“The investment in Blue Racer is a joint investment [we decided to join after] First Reserve appointed SK as the direct investor,” said a spokesperson for SK. “[The company’s participation] is another indication of [global] recognition of our expertise following our investment in Eureka Midstream Holdings.”
“SK’s diverse global portfolio of investments focuses on driving long-term shareholder value in key growth industries such as the energy sector. As a direct investor, SK will work alongside First Reserve and company management in supporting Blue Racer’s growth and strategic initiatives to expand the company’s regional footprint,” said a spokesperson for First Reserve.
Blue Racer is a joint venture that owns, operates and develops midstream assets in the Marcellus and Utica shale formation in the United States. The company has more than 700 miles of pipeline and 800 million cubic feet per day of cryogenic processing capacity.
Blue Racer Midstream transports gas generated from wells through pipelines. North America has seen a rapid increase in production of natural gas but has been struggling to build midstream infrastructure.
BY JIN MIN-JI [[email protected]]
with the Korea JoongAng Daily
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