Kinder Morgan Inc. announced June 1 that it has agreed to acquire Stagecoach Gas Services LLC for $1.225 billion. The purchase includes natural gas storage facilities and three pipelines that serve market demands in the U.S. Northeast and Marcellus production supply.
Stagecoach is a natural gas pipeline and storage joint venture between Consolidated Edison Inc. and Crestwood Equity Partners LP. Stagecoach consists of four natural gas storage facilities with a total FERC-certificated working gas capacity of 41 billion cubic feet and 185 miles of natural gas pipelines with multiple interconnects to major interstate natural gas pipelines, including Tennessee Gas Pipeline (TGP), a Kinder Morgan subsidiary. The transaction requires regulatory approval under Hart-Scott-Rodino, and it is expected to close in the third quarter of 2021.
“Acquiring Stagecoach will enhance our service to customers in this part of the country,” said Kimberly S. Watson, Kinder Morgan’s president of Interstate Natural Gas Pipelines. “These natural gas pipeline and storage facilities help connect natural gas supply sources and Northeast demand areas. Natural gas has long been responsible for providing heat and hot water to homes and businesses in the Northeast, and it now has an increasingly vital role as a reliable, low emissions partner backing up growing renewable power generation. We look forward to integrating these facilities into our suite of existing assets in the region.”
Kinder Morgan Inc. is one of the largest energy infrastructure companies in North America. Access to reliable, affordable energy is a critical component for improving lives around the world. We are committed to providing energy transportation and storage services in a safe, efficient and environmentally responsible manner for the benefit of people, communities and businesses we serve. We own an interest in or operate approximately 83,000 miles of pipelines and 144 terminals. Our pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and our terminals store and handle various commodities including gasoline, diesel, jet fuel, chemicals, ethanol, metals and petroleum coke. For more information, please visit www.kindermorgan.com.Tags: Kinder Morgan, mergers and acquisitions, Stagecoach Gas Services