SK group's holding company invests $150 mln in U.S. shale gas business
SEOUL, AJU - The holding company of South Korea's SK Group agreed to invest $150 million in Blue Racer Midstream, LLC, an American natural gas gathering and processing company, to increase its clout in the growing U.S. shale energy market.
SK Holdings said Thursday that the investment would be made through its American subsidiary, Plutus Capital, to acquire a stake in Blue Racer Midstream, which develops and delivers midstream infrastructure and services related to natural gas gathering, compression, treating, processing, and transportation.
Blue Racer Midstream, based in Dallas, Texas, has plants and operations in Ohio and West Virginia, and its long-term contracts of an average of more than 10 years are based on fixed commissions and are less affected by oil price fluctuations.
SK Holdings has increased its investment in North American gathering and processing (G&P) companies, including $1 billion in Eureka Midstream Holdings in 2017. Eureka is located in Marcellus-Utica Basin of Pennsylvania, Ohio, the largest natural gas reserve in North America.