Energy Transfer Considers Selling Stake in Rover Pipeline

Energy Transfer LP is considering selling its 33% stake in the Rover Pipeline, which transports natural gas from the Appalachians through the Midwest. The operator has already hired an adviser to assist in the selling process of its stake and has the potential of being sold for 2.5 billion, however Energy Transfer is still deciding whether or not to sell.

The Rover Pipeline began full service last year and runs at 713 miles long with carrying capacity of 3.25 billion cubic feet of gas every day across Ohio and Michigan, and even up towards Ontario. Due to high production levels, the Marcellus and Utica shale fields were experiencing constraints and creating issues for gas drillers, however the Rover pipeline has provided a solution as it has the ability to take on 10% of all Appalachian gas output.

Energy Transfer and Blackstone together control 65% of Rover, while Traverse Midstream has control of the other 35%. Some people have observed that if Energy Transfer does indeed decide to sell its stake in Rover, the company could acquire a 20% stake in a crude-oil export project located in Corpus Christi.

Source:
Chron