Edgewater Midstream, which wants to buy, build and operate storage terminals and pipelines in petroleum trading hubs and demand centres across North America, has been financed to the tune of £306 million by private equity firm EnCap Flatrock Midstream.
Commentators have speculated that the new pipeline company, (which was only formed at the end of November), wants to take advantage of deals in which capital-starved energy companies sell off their midstream assets. It plans to use the £306m injection to build crude oil, refined products and other bulk liquid pipelines in Houston.
CEO Stephen Smith said: “Changing dynamics in the North American petroleum market present attractive opportunities for Edgewater.”
He is joined at the company by former Motiva Enterprises executive oil trader Brian Thomason and Mike Truby, a former senior vice president with NuStar Energy, the San Antonio pipeline company.
Smith added in a statement that Edgewater wants to “embrace new technologies and environmentally sustainable practices.”
For more information visit www.edgewatermidstream.com