Kinder Morgan buying Stagecoach Gas Services
By Mike Brezonick02 June 2021
Kinder Morgan, Inc. (KMI) announced that it has agreed to acquire Stagecoach Gas Services LLC, a natural gas pipeline and storage joint venture between Consolidated Edison, Inc. and Crestwood Equity Partners LP. The purchase price is $1.225 billion, which is expected to be immediately accretive to its shareholders, Kinder Morgan said.
Stagecoach consists of four natural gas storage facilities with a total FERC-certificated working gas capacity of 41 bcfd 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 the third quarter of 2021.
“Acquiring Stagecoach will enhance our service to customers in this part of the country,” said KMI’s Kimberly S. Watson, president of Interstate Natural Gas Pipelines for Houston headquartered KMI. “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.”