Power generation company Talen Energy Corp. completed its sale of pipeline subsidiary Interstate Energy Co. LLC to New Jersey Resources Corp.'s Adelphia Gateway LLC for roughly $165 million.
Talen received $155 million in proceeds on top of $10 million paid when the deal was announced in late 2017, according to a Jan. 13 news release. The company plans to use the proceeds to pay down debt.
The 84-mile Interstate Energy pipeline was built to transport oil until the 34-mile northern portion was converted to deliver natural gas. Under the deal, the northern portion will continue to provide gas to Talen's Martins Creek and Lower Mount Bethel generating stations in Northampton County, Pa.
The Adelphia Gateway project will repurpose the 50-mile southern portion of the pipeline to carry Marcellus gas supplies to the greater Philadelphia region. The project is designed to connect to the Texas Eastern Transmission LP and Columbia Gas Transmission LLC pipeline systems.
The deal is part of Talen's plan to sell noncore assets after it was taken private in 2016, according to the company.