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Partners Group funds ‘timely’ gas project in US

The Swiss firm has invested in a liquefied gas plant alongside energy-focused Quanta Capital and a clutch of institutional investors.

Swiss investment firm Partners Group has funded half of a new liquefied natural gas facility to be built in Texas.

The investment manager has provided 50 percent of the Raven project’s equity and said the remainder would be funded via capital coming from institutional investors and US-based energy asset manager Quanta Capital.

Quanta will develop the project alongside Germany-based industrial group Evonik and Stone Bridge Energy Partners, aiming for Raven to become operational in 2018. Partners Group said that several major petrochemical companies have already signed long-term offtake contracts to buy some of the plant’s output. The company is in discussions regarding further agreements.

“Within the midstream energy sector in the US, we look for segments of the market where there is a clear gap in mission-critical infrastructure,” said Todd Bright, managing director and head of private infrastructure Americas at the firm.

“Raven is a timely project that responds to the need for more processing capacity within the US NGL value chain arising from the abundance of natural gas and the significant expansion of cost-advantaged polyethylene production. The project is strategically located close to critical transport links and presents a number of opportunities for future expansion.”

The deal is the latest large natural gas transaction concluded by Partners Group. In 2014, the firm acquired a majority stake in Mexican group Fermaca, valuing the company at $700 million. It injected another $500 million in the business a year later in a bid to connect Fermaca's US and Mexican pipelines.

Last year Partners Group also bought a 25 percent stake in an 800MW natural gas-fired power station in California.