Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Energy distributor UGI to buy some assets of Columbia Midstream

Energy distributor UGI Corp said it would buy some assets of Columbia Midstream Group from pipeline operator TC Energy Corp for about $1.28 billion to expand its midstream business.

The Pennsylvania-based company said in a statement that it expected the deal to be neutral to earnings per share in the 2020 fiscal year and accretive from the following year.

Columbia Midstream Group, which operates in the Appalachian Basin, owns four natural gas gathering systems, an interest in a company with gathering, processing and liquids assets, and a pipeline that runs through western Pennsylvania, eastern Ohio and northern West Virginia.

UGI Corp unit UGI Energy Services will acquire these assets from a subsidiary of TC Energy.

The sale does not include any interest in the company's minerals business in the Appalachian basin, Columbia Energy Ventures Company (CEVCO), TC Energy said in a separate statement.

"This transaction expands our midstream capabilities in the prolific gas producing region of the Southwest Appalachian Basin and provides an initial investment into both wet gas gathering and processing," John Walsh, the chief executive officer of UGI, said.

Reuters reported in April that TC Energy, formerly known as TransCanada, was exploring a potential sale of its Columbia Midstream unit.

The unit generates around $100 million of earnings before interest, tax, depreciation and amortization (EBITDA) annually, and could be valued at a multiple of 10 times that amount, three sources had told Reuters at the time.

Calgary, Alberta-based TC Energy is offloading parts of its infrastructure assets to help finance the $8 billion it has earmarked to spend on new projects in 2019, such as the high-profile Coastal GasLink system and the Keystone XL pipeline, which are likely to generate higher returns than these legacy assets. (Reporting by Mekhla Raina and Bhargav Acharya in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
On the changing landscape of global natural gas trade, the US has magnified its export power by remaining a net exporter for 13 months as of February 2019.
EWAnalysis: US LNG producers eye major growth
- Energy Web Atlas
The US LNG market has experienced rapid growth over the past decade due to the availability of inexpensive feedstock and increased worldwide demand.
Regional Focus: Nigeria moves to expand its liquefaction capacity
-Shem Oirere
The award in July 2018 of long-awaited contracts for the front-end engineering design (FEED) of Nigeria’s Train 7 gas plant expansion project to two consortia is the country’s latest attempt to address the enormous challenges of gas flaring and gas shortages for power plants and domestic consumption.


Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies

Register Now

By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.

June 18, 2019 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.