Kinder Morgan to Buy Stagecoach Gas Services for $1.23 Billion
(Reuters) — Kinder Morgan Inc said on Tuesday it has agreed to buy Stagecoach Gas Services LLC for $1.23 billion as the pipeline operator looks to expand into the northeast U.S. market.
Stagecoach is a natural gas pipeline and storage joint venture between Consolidated Edison Inc and Crestwood Equity Partners LP.
The deal, expected to close in the third quarter, will give Kinder access to Stagecoach's four natural gas storage facilities and three pipelines serving the northeast market.
Stagecoach has 185 miles of natural gas pipelines with multiple interconnects to major interstate natural gas pipelines, including Kinder Morgan's unit Tennessee Gas Pipeline.
Kinder Morgan said it expects the deal to be immediately accretive to its shareholders.
“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.”
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