Howard Energy Partners expands pipeline network with Midship acquisition

Howard Energy Partners has completed its acquisition of equity interests in the 200-mile Midship Pipeline from a subsidiary of Cheniere Energy, Inc., marking a significant expansion of its natural gas infrastructure in Oklahoma. The acquisition strengthens Howard Energy Partners’ footprint in the SCOOP/STACK plays of the Anadarko Basin, one of the most productive natural gas regions in the United States.

The Midship Pipeline acquisition adds a strategically located, FERC-regulated transmission system to Howard Energy Partners’ portfolio, enabling the company to enhance the transportation of natural gas from Oklahoma to key Gulf Coast and Southeast demand markets. The pipeline, which stretches from Kingfisher County to Bennington, Oklahoma, has an existing capacity of 1.1 billion cubic feet per day (Bcf/d), with the potential to be expanded to 1.4 Bcf/d.

This acquisition caps off a record-breaking year for Howard Energy Partners, with the company having completed more than $1.1 billion in mergers and acquisitions (M&A) in 2024. The transaction reinforces Howard Energy Partners’ position as a major player in midstream energy infrastructure, reflecting its ongoing commitment to long-term growth in natural gas transportation.

Howard Energy Partners’ Chairman and CEO, Mike Howard, emphasized that the acquisition aligns with the company’s broader strategy of scaling and integrating assets in high-demand natural gas basins. He noted that Howard Energy Partners has operated natural gas gathering pipelines in Oklahoma for years and that acquiring Midship Pipeline complements its existing operations in the region.

Why Is the Midship Pipeline Acquisition Significant for Howard Energy Partners?

The Midship Pipeline serves as a critical conduit for natural gas production in the SCOOP/STACK plays, connecting Oklahoma’s natural gas fields to interstate pipelines that supply fuel to Gulf Coast and Southeastern markets. With the growing demand for natural gas exports and domestic energy supply, the pipeline acquisition provides Howard Energy Partners with a high-value asset that enhances its ability to meet the needs of power plants, industrial users, and LNG facilities.

By assuming operatorship of the pipeline, Howard Energy Partners gains greater control over its transportation and distribution network, allowing it to optimize efficiencies and expand capacity as market demand grows. The acquisition also strengthens the company’s ability to secure long-term contracts, ensuring stable revenue streams and enhancing the profitability of its midstream operations.

The Midship Pipeline acquisition follows a broader industry trend of energy infrastructure firms investing in transmission assets that support the continued growth of natural gas as a key energy source. With natural gas demand projected to rise in both domestic and international markets, infrastructure companies like Howard Energy Partners are strategically positioning themselves to capitalize on growing energy transportation needs.

How Does Howard Energy Partners’ Recent Ethylene Pipeline Acquisition Fit Into Its Growth Strategy?

The Midship Pipeline acquisition is the latest in a series of major transactions for Howard Energy Partners. In January 2025, the company finalized the purchase of an ethylene pipeline from EPIC Midstream Holdings, further expanding its Gulf Coast infrastructure.

The 120-mile, bidirectional ethylene pipeline connects Gulf Coast Growth Ventures’ petrochemical complex in Corpus Christi to storage facilities in Markham, Texas, strengthening Howard Energy Partners’ position in the ethylene transportation market. The pipeline acquisition provides unique synergies with the company’s Javelina Plant, which processes olefins, hydrogen, and natural gas liquids (NGLs) from local refinery gas streams.

According to Mike Howard, the ethylene pipeline acquisition reflects Howard Energy Partners’ long-term strategy of expanding through a combination of organic growth and strategic acquisitions, anchored by long-term transportation contracts. He highlighted that the company’s internal team played a crucial role in successfully executing the deal, and he expressed confidence in the company’s ability to drive additional growth in 2025.

What Is the Impact of Howard Energy Partners’ Expanding Pipeline Network?

With these recent acquisitions, Howard Energy Partners has significantly strengthened its pipeline portfolio, enhancing its ability to transport both natural gas and petrochemical products across key energy-producing regions. The company now operates more than 1,500 miles of pipeline, with nearly 1 billion cubic feet per day of cryogenic processing capacity and 2.5 billion barrels of tank storage capacity in the United States and Mexico.

Industry analysts view Howard Energy Partners’ aggressive expansion strategy as a response to shifting energy market dynamics, where infrastructure investments in natural gas and petrochemical logistics are becoming increasingly valuable. As natural gas exports to global markets grow and domestic energy demand rises, Howard Energy Partners’ pipeline acquisitions position the company to capitalize on emerging opportunities in midstream energy transportation.

The company’s ability to integrate newly acquired assets into its existing network is expected to enhance operational efficiencies and drive long-term profitability. By strengthening its infrastructure in both natural gas and ethylene transportation, Howard Energy Partners is securing its place as a key player in the midstream energy sector, poised for continued growth.

What Lies Ahead for Howard Energy Partners?

With a strong track record of executing major transactions, Howard Energy Partners is expected to continue its expansion strategy in 2025. The company is likely to pursue additional pipeline acquisitions and infrastructure investments, further strengthening its natural gas and petrochemical transportation network.

As the energy sector evolves, Howard Energy Partners remains committed to building a diversified midstream platform, ensuring its ability to meet growing energy transportation demands while optimizing its asset portfolio for long-term success. The Midship Pipeline acquisition is just one example of the company’s ongoing efforts to expand strategically, securing valuable infrastructure that supports North America’s energy future.