May 19 (Reuters) - The private equity owner of Northwind

Midstream is exploring a potential sale of the Permian Basin gas

infrastructure operator, with any deal expected to value the

company at around $2 billion including debt, people familiar

with the matter said.

Five Point Infrastructure is working with investment bankers

at Piper Sandler ( PIPR ) on the sale effort, which is in its

early stages and may attract interest from midstream companies

as well as other buyout and infrastructure funds.

The people cautioned that there was no guarantee a deal

would be struck, and any agreement could come at a different

valuation. They also spoke on condition of anonymity to discuss

private deliberations.

Five Point declined comment. Northwind and Piper Sandler ( PIPR ) did

not respond to requests for comment.

Northwind Midstream was formed by Five Point in 2022 and,

since then, the company has developed a system of pipelines,

compressor stations and a treatment facility in the northern

part of the Delaware Basin, predominantly in New Mexico.

The company focuses on moving and treating so-called acid

gas, a form of natural gas which is high in hydrogen sulfide and

carbon dioxide. The chemical compounds need to be removed before

the natural gas can be used for commercial purposes.

The sale effort involving Northwind is the latest example of

private equity owners aiming to offload the energy

infrastructure networks which the companies have spent recent

years building out to support growing U.S. shale production.

Dealmaking activity is supported by publicly-listed pipeline

operators wanting to expand their capabilities after spending

recent years paying down debt and improving their stock prices.

Competition for assets is supplemented by healthy appetite

from investment firms, which have raised billions of dollars to

buy energy infrastructure, which offers steady returns from the

fees levied for moving oil and gas.