NextEra Snags Meade Pipeline Interest for $286MM
Ares Management Corp. plans to sell its 22.5 percent ownership interest in Meade Pipeline Co. LLC to a subsidiary of NextEra Energy Partners LP for about $286 million.
Meade owns approximately 39 percent of the Central Penn Line, a 185-mile pipeline that originates in Susquehanna County, Pa., and extends to Lancaster County, Pa. Central Penn is the greenfield part of the larger Atlantic Sunrise project operated by The Williams Companies through Transcontinental Gas Pipe Line Co. LLC (Transco).
The pipeline became operational in October 2018 and has the capacity to deliver up to 1.7 billion cubic feet per day of natural gas from the northeastern Marcellus area to markets in the mid-Atlantic and Southeastern regions of the U.S.
The deal includes a future expansion opportunity that is expected to add 0.6 billion cubic feet per day of natural gas capacity to Central Penn through the addition of compression at new and existing stations. Closing is expected to be in the fourth quarter.
BMO Capital Markets was financial advisor to Ares on the transaction.
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