DUKE ENERGY GAS TRANSMISSION AGREES TO ACQUIRE STORAGE AND PIPELINE ASSETS IN VIRGINIA FROM AGL RESOURCES
Acquisition will grow DEGT’s high-deliverability, natural gas salt storage position in the mid-Atlantic and lead to enhanced supply options for East
DEGT – already a 50-percent owner in Saltville Storage – will become sole owner upon closing.
The transaction is expected to close in the third quarter of this year.
“We believe this transaction will benefit DEGT in several ways,” said Martha B. Wyrsch, president and chief executive officer of the company.
“The acquisition will allow us to grow our high-deliverability salt cavern storage position in one of our market areas as well as grow the customer base of our East Tennessee Natural Gas (ETNG) system. Also, as we work to add the infrastructure that attaches more regional natural gas supply to ETNG, the acquisition of these assets will enhance our value by providing shippers with more supply alternatives and greater transportation flexibility.”
Saltville Storage, which began commercial operation in summer 2003 and is expandable, currently has a working gas capacity of about 2 billion cubic feet (Bcf). The geologic formation in the area provides for the only salt cavern storage in the mid-Atlantic market area.
In addition to Saltville Storage, other hard assets involved in the transaction include a nearby previously developed salt cavern and related facilities with a working gas capacity of about 1 Bcf, a 77-mile-long, 8-inch-diameter natural gas pipeline known as the P-25 line and the Early Grove storage field.
The P-25 pipeline stretches from Saltville to
“As natural gas supply remains tight and in anticipation of coming volumes of liquefied natural gas (LNG), high deliverability storage will play an increasingly important role in managing natural gas price volatility and meeting peak winter demand,” said Wyrsch.
“We are pleased to be strengthening our mid-Atlantic position with the acquisition of these strategic assets. DEGT will look to maximize the value of our acquisition and expand capacity as warranted as we seek to continue providing cost-effective services to our customers.”
DEGT plans to expand Saltville Storage as market demand dictates. The company already owns and operates more than 32 Bcf of high deliverability salt cavern working gas storage capacity in the
AGL Resources (NYSE: ATG), an Atlanta-based energy services holding company, serves 2.3 million customers in six states through its utility subsidiaries - Atlanta Gas Light, Elizabethtown Gas in New Jersey, Virginia Natural Gas in Norfolk, Florida City Gas, Chattanooga Gas, and Elkton Gas in Maryland. A Fortune 1000 company that ranks number 46 in the Fortune gas and electric utilities sector, AGL Resources reported 2004 revenue of $1.8 billion and net income of $153 million. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout the East and
Duke Energy Gas Transmission is a North American leader in developing natural gas energy infrastructure, connecting major natural gas supply sources to growing markets. Based in
Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the
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