UGI, Stonehenge acquire Pine Run Midstream
17 February 2021
Purchase gives companies high-producing Appalachian asset
Pine Run Gathering, a joint venture of Stonehenge Energy Resources and UGI Energy Services (UGIES) subsidiaries, has acquired Pine Run Midstream from a PennEnergy Resources affiliate for US$205 million.
PennEnergy, a Pittsburgh, Pennsylvania-based independent oil and gas company, is an Appalachian-based producer and anchor customer on the Pine Run system. Stonehenge III is the third partnership between Energy Spectrum Capital and Stonehenge Energy Resources management.
Pine Run Midstream operates 43 miles (69.2 km) of dry gas gathering pipeline and compression assets located in Butler and Armstrong counties in western Pennsylvania. The Pine Run Midstream system has been in operation since 2014 and will be operated by Stonehenge.
Pine Run Gathering is Stonehenge’s fourth venture in the Appalachian basin. This is the second recent investment in Appalachian basin natural gas gathering systems by UGIES as it continues to invest in assets well positioned in highly productive areas of the Marcellus Shale. UGIES will add its ownership stake in Pine Run Gathering to UGI Appalachia, which operates gathering assets in Pennsylvania, Ohio and West Virginia.