CenterPoint Sells 5,900 Miles of Ohio Gas Pipelines to National Fuel for $2.6 Billion
CenterPoint Energy will sell its Ohio natural gas business, including 5,900 miles of pipeline and 335,000 customers, to National Fuel Gas Company for $2.62 billion.
(P&GJ) — CenterPoint Energy has agreed to sell its Ohio natural gas local distribution company (LDC), Vectren Energy Delivery of Ohio, to National Fuel Gas Company for $2.62 billion, marking a significant divestiture in its multi-state utility portfolio.
The deal includes about 5,900 miles of transmission and distribution pipelines that serve roughly 335,000 metered customers across West Central Ohio. The sale price represents about 1.9 times the company’s 2024 Ohio LDC rate base.
The transaction, subject to regulatory reviews by the Public Utilities Commission of Ohio and the Hart-Scott-Rodino Act, is expected to close in late 2026. CenterPoint anticipates receiving $1.42 billion in proceeds in 2026 and the remaining $1.2 billion in 2027 under a seller note.
“Our Ohio natural gas business is a strong and growing enterprise supported by a deeply committed local team focused on safety, excellence in execution, and delivering positive outcomes for customers,” said Jason Wells, Chair and CEO of CenterPoint Energy. “Together with National Fuel, we will be focused on delivering a seamless transition for the approximately 335,000 customers in West Central Ohio.”
Wells added that the transaction aligns with CenterPoint’s 10-year, $65 billion capital plan, enabling it to “efficiently recycle more than $2 billion back into our other electric and natural gas businesses” to support long-term earnings growth.
While the Ohio divestiture continues CenterPoint’s trend of refining its gas portfolio, Wells emphasized that natural gas remains central to the company’s strategy in Texas, Indiana, and Minnesota, where it operates larger service territories.
Goldman Sachs & Co. LLC and Guggenheim Securities, LLC advised CenterPoint on the deal, while Gibson Dunn, Barnes & Thornburg, Bricker Graydon, and Whitt Sturtevant served as legal counsel.