US Fund Invests $250mn in Gas Infrastructure
Global Infrastructure Partners Capital Solutions Fund (GIP CAPS) is to invest up to $250mn in Caprock Midstream, it said September 18.
Caprock, founded 2015 through a partnership with Energy Spectrum Partners VII, is focused on "the economically attractive Delaware Basin in the Permian Basin [of West Texas and southern New Mexico] where a significant increase in production is continuing to drive growth of midstream infrastructure," it said.
Proceeds from the investment, together with Caprock’s senior secured term loan facility and additional common equity from Energy Spectrum, will be used to fund the continued build-out of Caprock’s Delaware Basin natural gas gathering and processing assets.
The co-CEO of GIP CAPS Reiner Boehning said: “We are very pleased to have entered into this transaction with Caprock and its sponsor, Energy Spectrum. Caprock’s assets provide a critical connection between the upstream and downstream segments of the energy value chain and benefit from Caprock’s strong market position in the Delaware Basin. This transaction is in line with GIP CAPS’ strategy of investing in critical infrastructure with strong management teams and attractive growth opportunities.”
Caprock CEO Mike Forbau said: ”We are pleased with the opportunity to broaden our relationship with GIP, an experienced and successful investor in the midstream sector. This growth capital will be used to continue building out our oil gathering system and commit to our third processing train which will bring our capacity at Pecos Bend Gas Plant to 340mn ft³/day.
New York-based GIP has investments in several ports and airports, water and energy assets including a 25% stake in Freeport LNG and a 50% interest in Hess Infrastructure Partners -- the latter being a US midstream asset in the Bakken Shale. GIP also acquired a 20% interest in Spanish utility Gas Natural a year ago for €3.8bn, and has an equal 50% interest with Denmark's Dong Energy in a 330 MW windfarm operating offshore Germany.
William Powell