Piedmont Natural Gas PNY today announced its equity investment in Constitution Pipeline Company,
LLC, a natural gas pipeline project slated to transport natural gas supplies
from the prolific Marcellus supply region in northern Pennsylvania to major
northeastern markets. The project is scheduled to be in service by March 2015.
Piedmont Natural Gas, through its wholly-owned subsidiary Piedmont
Constitution Pipeline Company, LLC, joins Williams Partners L.P. WPZ
and Cabot Oil and Gas Corporation COG as a 24 percent equity
participant in the joint venture, and will invest an estimated $180 million in
the new project.
Thomas E. Skains, Piedmont's Chairman, President, and CEO commented on the
Company's involvement, "Piedmont's equity participation in the Constitution
Pipeline project aligns very well with our strategic focus on expanding our
investments in complementary energy-related businesses as a means of enhancing
shareholder value." Skains continued, "We are excited about making an
investment in strategic pipeline infrastructure in the Marcellus supply basin
that will transport clean, low cost natural gas supplies to premium East Coast
markets and provide substantial benefits for both natural gas producers and
consumers. We are equally excited to be joining such strong joint venture
partners as Williams Partners and Cabot Oil and Gas, as both are outstanding
companies and widely respected in our industry."
An affiliate of Williams Partners will construct, operate, and maintain the
new 30-inch, 121-mile long transmission pipeline that is being designed with
sufficient capacity to transport 650,000 dekatherms of natural gas per day (a
quantity of natural gas that can serve approximately 3 million homes) from
established Marcellus production areas in Susquehanna County of northern
Pennsylvania. The pipeline will connect with the Iroquois Gas Transmission
and Tennessee Gas Pipeline systems in Schoharie County, New York and is
already fully contracted with long-term commitments from established natural
gas producers currently operating in Pennsylvania; Piedmont will not be a
customer of Constitution Pipeline. Williams Partners will maintain a 51
percent ownership share, Cabot Oil and Gas a 25 percent share, and Piedmont
Natural Gas, through its wholly owned subsidiary, a 24 percent share in the
pipeline venture.
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