Kinder Morgan Inc said on Tuesday it has agreed to buy Stagecoach Gas Services LLC for $1.23 billion as the pipeline operator looks to expand into the northeast U.S. market.
Stagecoach is a natural gas pipeline and storage joint venture between Consolidated Edison Inc and Crestwood Equity Partners LP.
The deal, expected to close in the third quarter, will give Kinder access to Stagecoach’s four natural gas storage facilities and three pipelines serving the northeast market.
Stagecoach has 185 miles of natural gas pipelines with multiple interconnects to major interstate natural gas pipelines, including Kinder Morgan’s unit Tennessee Gas Pipeline.
Kinder Morgan said it expects the deal to be immediately accretive to its shareholders.
Source: Reuters.com