UGI Corp. completed its acquisition of Columbia Midstream Group LLC from a TC Energy Corp. subsidiary for about $1.28 billion, a move that expands UGI's midstream portfolio in the southwestern Appalachian Basin.
The utility purchased Columbia Midstream through subsidiary UGI Energy Services LLC. Underpinned by long-term take-or-pay contracts or acreage dedications, the assets acquired will allow UGI Energy Services "to offer a full-scale, midstream platform while expanding [its] base of quality business partners and customers," UGI President and CEO John Walsh said in an Aug. 1 news release.
The deal marks UGI's first investment into wet gas gathering and processing, according to Walsh.
In July, UGI agreed to buy Columbia Midstream, which owns four natural gas gathering systems and an interest in a company with gathering, processing and liquid assets. The gathering systems have a capacity of roughly 2.6 Bcf/d.
The transaction does not include any interest in Columbia Energy Ventures Co., TC Energy's mineral business in the Appalachian Basin.