The Dallas private-equity firm looks to benefit from the role gas-fired electricity generation plays as a supplement to renewable power

By Luis Garcia
Feb. 17, 2021 7:00 am ET

Tailwater Capital agreed to acquire NorTex Midstream Partners LLC, betting that natural-gas storage will become increasingly important to help power operators compensate for the intermittent supply of renewable energy sources.

Founded in 2007, Houston-based NorTex owns underground gas-storage systems with a total capacity of 36 billion cubic feet as well as a gas hub and 83 miles of pipelines close to the Dallas-Fort Worth area. Power generators and gas utilities use NorTex’s systems to store natural gas that they can retrieve…