HOUSTON, Oct. 5, 2015 /PRNewswire/ -- Columbia
Pipeline Group, Inc. (NYSE: CPGX) ("CPG") and Columbia Pipeline
Partners LP (NYSE: CPPL) (together, "Columbia"), today announced that Three Rivers
Midstream LLC, an affiliate of Williams Partners L.P. (NYSE: WPZ)
("Williams Partners"), has become a member of Pennant Midstream,
LLC ("Pennant"), a joint venture between affiliates of Columbia
Midstream Group, LLC (an indirect wholly-owned subsidiary of CPG),
and Harvest Pipeline Company.
"We are pleased to add Three Rivers Midstream as a high-quality
partner to this joint venture," said Columbia Pipeline Group
President Glen Kettering, noting
that the combination is expected to significantly increase
Pennant's long-term infrastructure investment opportunities.
"Pennant leverages our extensive asset base and operating
experience in the Utica Shale region to create near-term value, as
well as long-term sustainable growth for our customers and
shareholders."
The executed agreement nearly triples the acreage dedicated to
Pennant to approximately 500,000 acres and results in the addition
of investment-grade producers, positioning Pennant to be a leading
long-term midstream services provider in the Mahoning
Valley.
Williams Partners' initial ownership investment in Pennant is 5
percent, and by funding specified, disproportionate investment
amounts for future growth projects, Williams Partners can invest
directly in the growth of the joint venture. Such funding will
potentially increase Williams Partners' Pennant ownership up to
33.33 percent over a defined investment period.
"Three Rivers is a logical
partner for Pennant," said Brett
Stovern, Pennant President. "The company's extensive
commercial and operations knowledge in the Appalachian Basin will
further increase our leadership position over our Utica footprint. With strong processing,
gathering and transport infrastructure in place, and the ability to
significantly expand and leverage our asset position, we look
forward to supporting further shale production in the Mahoning
Valley."
Pennant owns the Hickory Bend processing plant and related
gathering systems in Pennsylvania
and Ohio. The approximately
$400 million investment includes:
- Approximately 41 miles of 12-, 20- and 24-inch wet gas
field-gathering and high-pressure pipeline facilities;
- The Hickory Bend cryogenic natural gas processing plant in
New Middletown, Ohio;
- A residue pipeline with current deliveries to Dominion East
Ohio and Kinder Morgan's Tennessee
Gas Pipeline;
- An approximately 38-mile NGL pipeline from the Hickory
Bend processing plant to Utica East Ohio's Kensington Plant in Columbiana County, Ohio.
"The Hickory Bend system demonstrates many characteristics of
infrastructure we want in our portfolio – new, large-scale, easily
expandable and, importantly, highly efficient when it comes to NGL
recovery and fuel consumption," said Jim
Scheel, Williams Partners Senior Vice President, Northeast
G&P. "Additionally, by leveraging Pennant's existing gathering
and processing facilities we're able to serve customers in this
area in a timelier manner than if we built our own facilities."
About Williams Partners L.P.
Williams Partners L.P.
(NYSE: WPZ) is an industry-leading, large-cap natural gas
infrastructure master limited partnership with a strong growth
outlook and major positions in key U.S. supply basins and also in
Canada. Williams Partners has
operations across the natural gas value chain from gathering,
processing and interstate transportation of natural gas and natural
gas liquids to petchem production of ethylene, propylene and other
olefins. Williams Partners owns and operates more than 33,000 miles
of pipelines system wide – including the nation's largest volume
and fastest growing pipeline – providing natural gas for
clean-power generation, heating and industrial use. Williams
Partners' operations touch approximately 30 percent of U.S. natural
gas. Tulsa, Okla.-based Williams
(NYSE: WMB), a premier provider of large-scale North American
natural gas infrastructure, owns 60 percent of Williams Partners,
including all of the 2 percent general-partner interest.
www.williams.com
About Columbia Pipeline Group, Inc.
Columbia Pipeline
Group, Inc. operates approximately 15,000 miles of strategically
located interstate pipeline, gathering and processing assets
extending from New York to the
Gulf of Mexico, including an
extensive footprint in the Marcellus and Utica Shale production
areas. Columbia Pipeline Group also operates one of the nation's
largest underground natural gas storage systems. Columbia Pipeline
Group is listed on the NYSE under the ticker symbol CPGX.
Additional information can be found at www.cpg.com.
About Columbia Pipeline Partners LP
Columbia Pipeline
Partners LP, based in Houston,
Texas, is a fee-based, growth-oriented master limited
partnership formed to own, operate and develop a growing portfolio
of natural gas pipelines, storage and related midstream assets.
Columbia Pipeline Partners' business and operations are
conducted through CPG OpCo LP and its subsidiaries, which own and
operate substantially all of the natural gas transmission, storage
and midstream assets of Columbia Pipeline Group, Inc. Columbia
Pipeline Group operates approximately 15,000 miles of strategically
located interstate pipelines extending from New York to the Gulf
of Mexico, one of the nation's largest underground natural
gas storage systems, and a growing portfolio of related gathering
and processing assets. The majority of its assets overlay the
Marcellus and Utica Shale production areas. Additional information
can be found at www.columbiapipelinepartners.com or
www.cpg.com.
Forward Looking Statements
This press
release includes "forward-looking statements" as defined by
the Securities and Exchange Commission ("SEC"). These
statements include statements regarding the intent, belief or
current expectations of Columbia
and its management. Although Columbia believes that its expectations are
based on reasonable assumptions, it can give no assurance that its
goals will be achieved. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially from expectations, including required approvals
by regulatory agencies, the possibility that the anticipated
benefits from such activities, events, developments or transactions
cannot be fully realized, the possibility that costs or
difficulties related thereto will be greater than expected, the
impact of competition, and other risk factors included in
Columbia's (or its affiliates')
reports filed with the SEC. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Columbia expressly disclaims any duty to
update any of the forward-looking statements contained in this
release.
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SOURCE Columbia Pipeline Group, Inc.