ABU DHABI (ALETIHAD)

ePointZero, a subsidiary of 2PointZero Group, has completed the acquisition of US-based Traverse Midstream Partners for $2.25 billion in an all-cash transaction, marking its first investment in US natural gas infrastructure.

The acquisition gives the Abu Dhabi-based energy infrastructure investment platform minority, non-operated interests in two US midstream assets: a 35% stake in the Rover Pipeline and a 25% stake in the Ohio River System.

Both systems are operated by Energy Transfer, a US midstream operator, according to a statement issued by 2PointZero.

Traverse was acquired from The Energy & Minerals Group, a natural resources-focused private equity firm.

The assets are located in the Appalachian Basin, described in the statement as the largest natural gas-producing basin in North America. The pipeline systems connect production areas with demand centres across the US, including liquefied natural gas export corridors, power-generation networks and industrial hubs.

The assets operate under long-term take-or-pay contracts, under which customers commit to payments for reserved pipeline capacity regardless of the volumes transported.

The transaction represents ePointZero’s entry into the US natural gas market and forms part of its strategy to build a geographically diversified portfolio of energy infrastructure assets supported by long-term contracted cash flows, the statement said.

His Highess Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, Chairman of 2PointZero, said: “This acquisition through ePointZero reflects our commitment to investing in the critical infrastructure that underpins global growth. US energy infrastructure offers a compelling entry point through high-quality, strategically located assets, and we see this as the first step in building a scaled, long-term presence in the market connecting capital, partnerships, and opportunity to support rising global demand.”

Mohamed Hesham, CEO of ePointZero, said the acquisition represented a landmark transaction for the company in critical energy infrastructure.

“By securing a significant stake in a premier North American natural gas transportation network, we are not only acquiring stable, long-term yields but are backing a platform that can reliably deliver gas to customers and markets where demand is rapidly growing,” Hesham said.

He added that the transaction established ePointZero’s presence in the US gas market and created a platform for further expansion in North America.

John Raymond, Founder and Executive Chairman of The Energy & Minerals Group, said Traverse had established a position in two strategically important North American natural gas systems during the private equity firm’s ownership.

“We are proud of what the Traverse team has accomplished and believe these assets are well positioned for continued success under ePointZero's ownership,” Raymond said.

J.P. Morgan Securities served as financial adviser to ePointZero, while Santander US Capital Markets led the committed financing for the transaction. Mizuho also provided committed financing.

Akin Gump Strauss Hauer & Feld served as legal adviser, while Alvarez & Marsal provided financial and tax advisory services to ePointZero.

Evercore and Greenhill & Co., a Mizuho affiliate, served as financial advisers to Traverse. Gibson, Dunn & Crutcher and Weil, Gotshal & Manges acted as its legal advisers.