Ares Sells Interest in Meade Pipeline to NextEra Energy Partners
Ares Management Corporation (Ares) has announced that a fund managed by its Infrastructure and Power strategy has signed a definitive agreement to sell its 22.5 percent ownership interest in Meade Pipeline Co (Meade) to a subsidiary of NextEra Energy Partners for approximately $286 million.
Meade owns approximately 39 percent of the Central Penn Line, a FERC-regulated, 185-mile natural gas pipeline that originates in Susquehanna County, Pennsylvania, and extends to Lancaster County, Pennsylvania.
Central Penn is the greenfield part of the larger Atlantic Sunrise project operated by The Williams Companies through Transcontinental Gas Pipe Line Company, LLC (Transco). The pipeline became operational in October 2018, and, through interconnection with the larger Transco pipeline system, has the capacity to deliver up to approximately 1.7 billion cubic feet per day of natural gas from the northeastern Marcellus-producing area to markets in the mid-Atlantic and Southeastern regions of the United States.
Included in the transaction is a future expansion opportunity that is expected to add an estimated 0.6 billion cubic feet per day of natural gas capacity to Central Penn through the addition of compression at new and existing stations.
“Our Meade Pipeline investment demonstrates Ares’ investment strategy to partner in the development of critical infrastructure assets, bring them online and ultimately create value for our fund investors,” said Keith Derman, Partner of Ares and Co-Head of Ares Infrastructure and Power.
The transaction is expected to close in the fourth quarter of 2019, subject to closing conditions and regulatory approvals.
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