Morgan Stanley’s energy investment division has made a majority equity investment in a Houston-based company planning to expand its midstream natural gas services in the US.
Durango Midstream, a company run by former Energy Transfer Partners executive Richard Cargile, received an undisclosed commitment from Morgan Stanley Energy Partners, an affiliate of the US bank’s $447 billion investment business. The firm usually deploys between $50 million and $250 million per deal in energy companies located primarily in North America.
Durango is a natural gas gathering, processing and marketing company providing midstream services to oil and gas producers in Texas, Oklahoma and Kansas. The company said it plans to invest in projects that will focus on expanding gathering and processing systems in Grady County, Oklahoma to support a rapidly growing natural gas industry in the area.
“We are excited about our strategic partnership with Morgan Stanley Energy Partners,” Cargile said. “Their global network and […] their history of success in the energy business will help us accelerate our growth plans in the Midcontinent and expand into other leading oil and gas basins in the United States.”
The US midstream sector has been one of the hottest in infrastructure this year as investors have sought to capitalise on increased oil and gas production in the US Midwest, high commodity prices and strong demand.