Surging shale spawns new financing structure for energy infrastructure

Surging shale spawns new financing structure for energy infrastructure

Strong demand for shale oil-and-gas infrastructure is giving rise to an important new financing vehicle for pipeline, processing and storage ventures that are needed to get more shale fuels to market.

So-called special purpose acquisition companies, or SPACs, seek to fill the gap left by the declining use of master limited partnerships, which historically have helped finance such capital-intensive midstream projects.

U.S. crude output is expected to rise 4.5 percent this year and another 7.5 percent in 2018, to about 10 million barrels per day, eclipsing a 47-year-old record. Without hefty infrastructure investments – about $30 billion a year through 2020, according to Tortoise Capital Advisors – that increased flow could face a bottleneck. Read More…

 

 

Credit By: Dna India

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