SK Holdings to invest $100mn in U.S. shale gas company

2017.09.27 17:16:21 | 2017.09.28 16:55:48
  • print
  • email
  • facebook
  • twitter
  • share
SK Holdings, the holding company of South Korea’s SK Group, Tuesday announced its board has decided to invest $100 million in Eureka Midstream Holdings, a shale gas gathering and processing (G&P) company in North America.

G&P encompasses the aggregating of natural gas produced from gas wells through pipelines and processing to remove impurities, making the gas ready to be consumed by end users.

Eureka Midstream operates in the Marcellus and Utica share regions, where North America’s largest natural gas reservoirs are located. The company owns pipelines capable of transporting 17 million tons of natural gas per year.

The company is known to be very profitable with a high EBITDA margin of 66 percent. Morgan Stanley Infrastructure, the largest shareholder of Eureka Midstream, reportedly decided to sell part of its stake to form a strategic partnership with SK.

The investment will enable SK Group to strengthen the entire value chain covering the development, transport and supply of natural gas in the United States.

The G&P business in North America is expected to continue fast growth given rising demands for eco-friendly natural gas and particularly the increase in energy infrastructure across the U.S., according to SK Holdings.

By Hwang Hyung-gyu

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

weather

  • Seoul Thu 14 December 2017
  • THURS

    -5.0℃

ad

markets12.14 15:59

markets
KOSPI 2,469.48 11.07 -0.45%
KOSDAQ 770.35 1.87 -0.24%
Dollar/Won 1,089.10 1.6 -0.15%
Get Newsletters