Duke Energy joint venture expands midstream interests
Duke Energy Field Services, Denver, increased its midstream presence in the Gulf of Mexico with its purchase of the former MCN Investment Corp.'s ownership interest in natural gas gathering, transport, and processing facilities off Louisiana, Mississippi, and Alabama, company officials said Wednesday.
By the OGJ Online Staff
HOUSTON, July 18 -- A joint venture between Duke Energy Corp. and Phillips Petroleum Co. increased its midstream presence in the Gulf of Mexico with its purchase of the former MCN Investment Corp.'s ownership interest in natural gas gathering, transportation, and processing facilities off Louisiana, Mississippi, and Alabama, company officials said Wednesday.
Terms were not disclosed in that deal, which boosted the holdings of Duke Energy Field Services, Denver, in Dauphin Island Gathering Partners (DIGP) to 71.8% from 37.3% previously. That same deal also increased the joint venture's interests in Mobile Bay Processing Partners (MBPP) to 57.6% from 28.8%; and in Gulf Coast NGL Pipeline LLC to 57.9% from 28.9%.
The acquisition closed July 11, making Duke Energy Field Services the owner and managing partner of DIGP and MBPP and the managing member of Gulf Coast, officials said.
Natural gas that moves through that system is delivered to interstate natural gas pipelines that serve growing areas throughout the northeastern and southeastern US. Natural gas liquids extracted from the gas stream at MBPP's Coden, Ala., facility are transported to Louisiana fractionation facilities via pipelines partially owned by Gulf Coast.
"The eastern gulf will be a critical natural gas supply basin for the growing Southeast area power plant markets in Florida, Alabama and Georgia," said Mark Borer, senior vice-president of Duke Energy Field Services. That joint venture was formed through the combination of Duke Energy's and Phillips Petroleum Co.'s gas gathering and processing businesses. Duke Energy owns 70% of that joint venture, with Phillips holding the other 30%.
MCN Investment merged in May with DTE Energy, a Detroit-based diversified energy company that decided to divest those noncore assets.