Stonepeak backs Paradigm midstream expansion

New York private equity firm Stonepeak Infrastructure Partners has partnered with Paradigm Energy Partners, a midstream company based in Dallas, by committing to fund the expansion of a crude oil gathering system in North Dakota, Paradigm said in a statement, announcing the execution of a gathering contract that will anchor that expansion.

Stonepeak expects to deploy an initial $200 million for the expansion of the Charleson Gathering System, a 51.4-mile pipeline connecting north and central McKenzie County, as well as producer to multi-market transportation and storage options. The pipeline is expected to be in operation in the fourth quarter of 2014.

“The initial financing will be used to support Paradigm’s build-out in McKenzie County, but the partnership’s expectations will be to increase the capital commitment as the company executes its substantial midstream build-out in North Dakota and South Texas,” Paradigm said.

A full-service midstream company, Paradigm serves crude oil and natural gas producers in North Dakota’s Bakken Shale and the Eagle Ford Shale in south Texas.

“We continue to have a strong appetite for contracted energy infrastructure projects, and believe the North American shale revolution presents a once-in-a-generation opportunity to participate in the build-out of an entire network of critically important infrastructure in the world’s most developed economy,” Stonepeak senior managing director Michael Dorrell said.

In addition to the energy sector, Stonepeak also invests in businesses comprised of hard assets with strategic importance in the power and renewables, transportation, utilities, water, and communications sectors.