Consolidated Edison, Inc. (Con Edison) and Crestwood Equity Partners LP (Crestwood) announced that they have completed the formation of a new joint venture to own and develop Crestwood's existing natural gas pipeline and storage business located in southern New York and northern Pennsylvania.
As part of the transaction, Crestwood contributed its existing interstate natural gas pipeline and storage business to a new entity, Stagecoach Gas Services LLC (Stagecoach Gas Services), and a subsidiary of Con Edison Transmission, Inc. (Con Edison Transmission), which is a wholly-owned subsidiary of Con Edison, indirectly purchased a 50% equity interest in Stagecoach Gas Services for approximately US$945 million, which was distributed to Crestwood. Subject to working capital and certain other adjustments contemplated by their contribution agreement, the parties' initial contribution has an implied market value of almost US$2 billion.
Subject to New York State regulatory approval and the satisfaction of certain other closing conditions, Crestwood has also agreed to contribute to Stagecoach Gas Services its existing New York intrastate pipeline and Con Edison Transmission has agreed to contribute approximately US$30 million, which will be distributed to Crestwood.
Edited from source by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/07062016/con-edison-and-crestwood-close-jv/