UGI Completes $1.28B Columbia Midstream Acquisition
(P&GJ) — Energy distributor UGI Corporation said its Energy Services subsidiary has completed an acquisition of equity interests of Columbia Midstream Group from TC Energy for $1.275 billion.
John L. Walsh, president and chief executive officer of UGI Corporation, described the deal as an "important acquition that enhances our midstream capabilities in the prolific gas producing region of the southwest Appalachian Basin.
"The addition of this diversified asset network, supported by long-term take-or-pay contracts or acreage dedications, will enable UGI Energy Services to offer a full scale, midstream platform while expanding our base of quality business partners and customers," Walsh said, noting that the transaction represents UGI's first investment into wet gas gathering and processing.
The previously announced acquisition significantly expands UGI’s midstream portfolio and provides an opportunity to invest an additional $300 - $500 million over the next five years, the company said. Columbia Midstream Group holds five natural gas gathering systems with capacity of roughly 2,675,000 MMBtu/day and 240 miles of pipeline in the southwestern core of the Appalachian Basin.
TC Energy is selling some of its assets to help fund new projects, including Keystone XL pipeline and the Coastal GasLink system. The Calgary-based company plans to spend about $8 billion this year on projects that should generate higher returns than the assets it is selling to support its capital program.
TC Energy continues to own and operate its significant network of interstate pipelines in the Appalachian Basin with its Columbia Gas Transmission system, which transports low-cost natural gas supply from the production region to markets in the U.S., including LNG export facilities that serve international markets.
Related News
Related News
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Gazprom’s Grandeur Fades as Europe Moves Away from Russian Gas
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
Comments