U.S. $18.8bn energy deal creates major pipeline operator
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The American company Oneok, engaged in the storage and transportation of liquefied gas, announced buying U.S. oil pipeline operator Magellan Midstream for $18.8 billion. The Wall Street Journalthe merger will create the second largest pipeline operator in the United States.
The combined market capitalization of both companies will exceed $40 billion. In addition, this transaction will be the largest merger of the current year in the US energy sector.
The combined company will own or operate pipelines for the transportation of oil, oil products, gas and other fuels with a total length of about 40 thousand km, as well as several large storage facilities on the coast of the Gulf of Mexico and on the continent.
Oneok CEO Piers Norton said the deal would not only create one of the largest pipeline operators in North America, but also take a more active part in the “energy transformation” of mastering the transportation and storage of fuels such as hydrogen, as well as fuels from renewable and organic sources.
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