South Korea group invests $300M in Marcellus shale

By Luke Geiver | April 01, 2019

SK Holdings Co., a top two conglomerate in South Korea, is investing in the Marcellus and Utica shale plays. Working with FirstReserve, a global private equity firm that has several major oil and gas entities listed in its portfolio of investments, SK Holdings will infuse $300 million into a midstream company.

Blue Racer Midstream LLC will gain the investment. The company owns a unique location in the shale gas plays and operates more than 700 miles of interconnected gathering pipeline and an additional cryogenic processing capacity topping 1 billion cubic feet of processing per day.

“We believe Blue Racer is a well-positioned business in a growing market, and we are excited to welcome SK as a strategic investor,” said Alex Krueger, president and CEO of FirstReserve.

Since 2014, SK Holdings has been investing in oil and gas assets throughout the U.S. Last year, the South Korean entity acquired the SCOOP/STACK assets of a privately-held oil and gas production firm based in Oklahoma. At the time of the investment, the company noted that it intended to become one of the top exploration and production entities throughout the U.S.

Because of its location and contracts with major shale gas producers of the Appalachain Basin, SK, FirstReserve and Blue Racer all believe the midstream is well positioned for continued success and growth into the future.

In addition to Blue Racer, FirstReserve also has investments in Ascent Resources, Vista Proppants and Logistics, TNT Crane & Rigging, Plains All American and several others.

FirstReserve always look to invest in either onshore or offshore oil and gas, exploration and production firms, lower-cost unconventionals, and/or, proven management teams previously receiving funding from FirstReserve.