WGL Midstream, a WGL Holdings company, announced it exercised an option for an $89 million equity investment in the Stonewall Gas Gathering System, representing a 35% ownership stake.
The system began operations in November and currently gathers 1 Bcf/d of natural gas daily from the Marcellus production region in West Virginia, delivering it to an interstate pipeline system.
WGL Midstream secured an option to invest in the Stonewall system as part of an existing supply agreement with Antero Resources Corporation, a natural gas operator in the Marcellus and Utica Shale region, and the primary shipper in Stonewall.
The agreement with Antero included a firm sales agreement for 330,000 Dth/d to supply mid-Atlantic markets and WGL customers, such as GAIL Global (USA) LNG LLC, a subsidiary of GAIL (India) Limited.
In 2014, WGL Midstream executed a gas sale and purchase and capacity agreement with GAIL to sell up to 430,000 Dth/d of natural gas, for a term of about 20 years, starting on the in-service date of the Cove Point LNG export facility.
WGL Midstream expects the majority of this natural gas will be supplied through its agreement with Antero.