By Colin Kellaher

 

Kinder Morgan Inc. on Tuesday said it agreed to buy Stagecoach Gas Services LLC, a natural-gas pipeline and storage joint venture of Consolidated Edison Inc. and Crestwood Equity Partners LP, for $1.225 billion.

Kinder Morgan said Stagecoach consists of four natural-gas storage facilities with a total working capacity of 41 billion cubic feet and 185 miles of natural-gas pipelines with multiple interconnects to major interstate natural-gas pipelines, including Kinder Morgan's Tennessee Gas Pipeline unit.

Crestwood and Con Edison, which formed Stagecoach in 2016, said they will split the cash proceeds in line with their 50% stakes in the venture.

Kinder Morgan, a Houston energy infrastructure company, said the deal will enhance our service to customers in the northeast U.S.

Houston-based Crestwood, which owns and operates midstream businesses across the U.S., said it will use its share of the proceeds to repay borrowings under its revolving credit facility.

New York utility holding company Con Edison said the sale of Stagecoach is consistent with its transition to clean energy.

The companies said they expect to complete the transaction in the third quarter of 2021.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

June 01, 2021 09:40 ET (13:40 GMT)

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