Kinder Morgan, Inc. (NYSE: KMI) reported Tuesday that it has agreed to acquire Stagecoach Gas Services LLC for a purchase price of $1.225 billion.
A joint venture between Consolidated Edison, Inc. (NYSE: ED) and Crestwood Energy Partners LP (NYSE: CEQP), Stagecoach comprises four natural gas storage facilities and three pipelines serving U.S. Northeast market demand and Marcellus supply, Kinder Morgan noted in a written statement.
“Acquiring Stagecoach will enhance our service to customers in this part of the country,” remarked Kimberly S. Watson, president of KMI’s Interstate Natural Gas Pipelines unit. “These natural gas pipeline and storage facilities help connect natural gas supply sources and Northeast demand areas.”
The Stagecoach assets boast a total Federal Energy Regulatory Commission-certificated working gas storage capacity of 41 billion cubic feet and 185 miles of gas pipelines, which interconnect to major interstate gas pipelines including KMI subsidiary Tennessee Gas Pipeline (TGP), Kinder Morgan stated. TGP carries natural gas from Louisiana, the Gulf of Mexico, and South Texas to the Northeast, according to KMI’s website.
“Natural gas has long been responsible for providing heat and hot water to homes in the Northeast, and it now has an increasingly vital role as a reliable, low emissions partner backing up growing renewable power generation,” noted Watson. “We look forward to integrating these facilities into our suite of existing assets in the region.”
Kinder Morgan stated that it expects the transaction, which needs regulatory approval under the federal Hart-Scott-Rodino Antitrust Improvements Act, to close in the third quarter of this year.
To contact the author, email mveazey@rigzone.com.
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