Kinder Morgan to purchase Stagecoach Gas Services
Published by Aimee Knight,
Editorial Assistant
World Pipelines,
Kinder Morgan, Inc. has announced that it has agreed to acquire Stagecoach Gas Services LLC (Stagecoach), a natural gas pipeline and storage joint venture between Consolidated Edison, Inc. and Crestwood Equity Partners LP.
Stagecoach consists of 4 natural gas storage facilities with a total FERC-certificated working gas capacity of 41 billion ft3 and 185 miles of natural gas pipelines with multiple interconnects to major interstate natural gas pipelines, including Tennessee Gas Pipeline (TGP), a KMI subsidiary. The transaction requires regulatory approval under Hart-Scott-Rodino, and it is expected to close in 3Q21.
“Acquiring Stagecoach will enhance our service to customers in this part of the country,” said KMI’s President of Interstate Natural Gas Pipelines Kimberly S. Watson. “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.”
KMI expects the investment to be immediately accretive to its shareholders. The US$1.225 billion purchase price represents approximately 10 times Stagecoach 2020 EBITDA that, with synergies, is expected to improve to a high single-digit EBITDA multiple.
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World Pipelines’ May 2021 issue
The May issue of World Pipelines includes a regional report on Canada’s oil and gas sector, as well as technical articles on integrity management software, leak detection, NDT, and project case studies. Don’t miss our feature on young pipeliners, in which World Pipelines’ Senior Editor Elizabeth Corner interviews the winners of the John Tiratsoo Award for Young Achievement, awarded by Young Pipeliners International, in partnership with PPIM.
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/01062021/kinder-morgan-to-purchase-stagecoach-gas-services/
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