CenterPoint leaves midstream behind
CenterPoint Energy, the only investor-owned electric and gas utility based in Texas, said December 2 it was cutting back on its exposure to the midstream business segment.
CenterPoint said it made its decision following the completion of a merger between Texas-based Energy Transfer and Oklahoma-based Energy Midstream. Together with OGE Energy, also headquartered in Oklahoma, CenterPoint held a near-80% interest in Enable’s outstanding units.
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Energy Transfer now owns and operations an estimated 183,500 km of pipelines in the continental United States.
“We are now firmly on an accelerated path to reducing our exposure to the midstream industry,” CenterPoint CEO Dave Lesar said. “This transaction aligns with our newly unveiled 10-year growth strategy that focuses on investing in the footprint of our pure-play regulated business.”
CenterPoint early this year sold its natural gas local distribution companies to Summit Utilities, which counts approximately 100,000 customers and 8,700 km of pipeline in Arkansas, Colorado, Maine, Missouri and Oklahoma in its portfolio.
Apart from the gas distribution companies, CenterPoint handed over 27,400 km of pipeline in Arkansas, Oklahoma and Texas serving more than 500,000 customers to Summit as part of the transaction.