#First #Reserve Invests $100 Million In Mid Stream #Assets
First Reserve Corporation, a global private investment firm with a focus in the energy and natural resource industries is pumping in $100 million for a 50% stake in two new natural gas gathering systems in Pennsylvania through a joint venture with Energy Corporation of America (ECA), Reuters reported. The two companies are looking to collaborate to tap into the enormous shale formations that are spread across Pennsylvania and parts of New York and West Virginia. ECA a privately held company has significant Marcellus shale acreage.
The investment will be funded through First Reserve’s $1.2 billion infrastructure provision to garner "mid-stream" assets that include gathering systems and other installations to collect, move and store natural gas. Speaking to Reuters, First Reserve managing director Mark Florian calling the acquisition an important "opportunity" said, "The midstream assets are important to (exploration & production companies) in terms of being able to handle the delivery of gas to market, but at the same time, it’s not their core business. So we do feel this is representative of an opportunity in the U.S., in Canada, and parts of Europe."
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