Midstream spending was down in 2012 from the prior year, but things are looking up for the future, according to a new report. Merger and acquisition activity will strengthen in coming years thanks to the need to get U.S. oil and gas to market, says the recently-released Deloitte study. And if midstream deals from early 2013 are any indication, the report is spot-on.

Kinder Morgan Energy Partners LP led the charge by acquiring Copano Energy LLC in a unit-for-unit transaction totaling $5 billion, including the assumption of debt. The transaction, which is expected to close during the third quarter, has been approved by the boards of directors of both companies.

Copano operates mainly in Texas, Oklahoma and Wyoming and owns or operates about 6,900 miles of pipelines with 2.7 billion cubic feet (Bcf) per day of natural gas capacity. As well, it has nine processing plants with more than 1 Bcf per day of processing capacity and 315 million cubic feet per day of treating capacity, Kinder Morgan said in a release.

“We continue to be bullish on the domestic shale plays and believe they will drive substantial future growth at (our company),” said Kinder Morgan Chief Executive Richard D. Kinder in a public statement. “Copano’s assets are very complementary to ours, as KMP is principally a pipeline transportation and storage company, while Copano is primarily a fee-based gathering, processing and fractionation player. Broadening our midstream assets will allow us to offer a wider array of services to our customers.”

Samchully Asset Management Co. Ltd. made a big move of its own with the acquisition of a 34% interest in Marathon Oil Co.’s Neptune gas processing plant in St. Mary Parish, Louisiana. Samchully paid $170 million for the stake. The transaction was the first direct investment in a U.S. midstream asset by a Korean financial entity, according to the companies.

Meanwhile, Deloitte recently released a report titled “Oil & Gas Mergers and Acquisitions: Stable oil prices support a healthy deal market” that suggests midstream spending will remain strong.

The report indicates that the need to move U.S.-produced oil and gas to market from new regions and directions will drive capital spending and funding needs in coming years. It adds that in 2012, midstream mergers and acquisitions reached $35.6 billion. That figure is significantly lower than 2011’s total of $84.5 billion, the report notes.

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