Distributor UGI acquires Appalachia midstream assets
US distributor UGI said January 4 a subsidiary had entered into a definitive agreement to acquire Stonehenge Appalachia from Stonehenge Energy Holdings for about $190mn.
Stonehenge Appalachia is a small natural gas gathering system in Butler County, Pennsylvania consisting of about 75 km of pipeline and associated compression assets, with a gathering capacity of about 130mn ft3/day.
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UGI entered the Appalachian Basin in 2019 when it acquired Columbia Midstream from TC Energy in a $1.27bn deal that included four natural gas gathering systems.
“The acquisition of Stonehenge, in addition to our recent purchase of an ownership stake in the Pine Run gathering system, demonstrates our commitment to the Appalachian basin, which averaged a record 31.9bn ft3/day of production in the first half of 2021, the highest for a six month period since production began in 2008,” UGI executive vice president Robert Beard said.
Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania and West Virginia, distributes LPG in the US and internationally, manages natural gas midstream assets in Pennsylvania, Ohio and West Virginia and electric generation assets in Pennsylvania. It also markets energy products and services, including renewable natural gas, in the eastern US, California and internationally, in France, Belgium, the Netherlands and the UK.
The transaction is subject to customary regulatory and other closing conditions, including US anti-trust clearance. Assuming fulfilment of all conditions, the acquisition is expected to close by January 31.