Chesapeake sells pipelines to raise $US588 million
Tue, 29 September 2009
Oklahoma-based Chesapeake Energy has sold half of its natural gas pipelines in the Barnett Shale located in north Texas, to raise $US588 million.
Chesapeake has entered into an agreement with Global Infrastructure Partners to form a joint venture in which Chesapeake will contribute the Barnett Shale pipelines and processing facilities, referred to in the agreement as “midstream assets”, to the newly created entity Chesapeake Midstream Partners (CPM).
The pipelines will continue to be operated by existing Chesapeake employees to ensure continuity of service.
Chesapeake will continue to operate its remaining pipelines outside the CMP joint venture through a separate company Chesapeake Midstream Development.
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