To grasp where the money is moving in the sector, take a look at the construction table at the back of this issue or on the Midstream Business website.

Only nine projects are recorded in November and December 2016—just seven in North America—compared to 15 (12 in North America) during the same period of 2015.

The industry backed off organic growth in favor of consolidation, illustrated by the biggest deal on the table below: TransCanada Corp.’s $3.7 billion sale of its U.S. Northeast Power business to fund its purchase of Columbia Pipeline Group. No. 2 on the list? The Croatian government’s investment in the INA energy giant in a transaction that includes pipelines.

It’s a little slow, but take note of two deals on the list. One is Shell Midstream Partners LP’s purchase of interest in three Gulf of Mexico pipelines from BP Group. The other is a $353 financing deal for Howard Midstream Energy Partners’ Nueva Era natural gas pipeline from Webb County, Texas, to Monterrey, Mexico.

Shell Midstream is enlarging its footprint in the eastern Gulf with acquisitions that will connect Shell Pipeline Co.’s Mattox pipeline, under construction, to onshore markets. Mattox will serve the proposed Appomattox platform. The consensus among financial analysts as the year begins is that Shell Midstream is a solid “buy.”

Howard’s 50:50 joint venture with Grupo CLISO will transport 600 million cubic feet per day (MMcf/d) of gas from South Texas to Mexico when it goes into service in second-half 2017. The 200-mile line’s capacity is expandable to 900 MMcf/d and represents a leading edge in exports of U.S. shale gas to the growing Mexican economy.

There are better days ahead, and these transactions are preparations to take full advantage.

Joseph Markman can be reached at jmarkman@hartenergy.com or 713-260-5208.

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