Dominion plans to acquire Carolina Gas Transmission for $493 million
In another move to expand its holdings in natural gas, Richmond-based Dominion Resources Inc. announced Tuesday plans to acquire a natural gas transportation company for $492.9 million.
Dominion has agreed to purchase Carolina Gas Transmission (CGT) from SCANA Corp. CGT owns and operates nearly 1,500 miles of natural gas pipeline in South Carolina and southeastern Georgia. The company expects to complete the acquisition in January 2015.
“Carolina Gas Transmission is a great fit for our well-run, regulated natural gas businesses as we expand our operations into the Southeast,” Thomas F. Farrell II, chairman, president and CEO of Dominion and chairman and CEO of Dominion Midstream, said in a statement.
Dominion said in a news release it plans to keep CGT’s 120-person workforce and is committed to an extended period of rate stability for current CGT customers.The transaction would include no assumption of debt and, upon closing, would be immediately accretive to Dominion's operating earnings per share.
Subject to board approvals by Dominion and Dominion Midstream Partners, Dominion expects to contribute CGT into Dominion Midstream for a combination of debt and units by mid-2015. Through some of its subsidiaries, Dominion currently owns a 68.5 percent limited partner interest in Dominion Midstream, in addition to its general partner, and all associated incentive distribution rights.
The CGT acquisition will require Hart-Scott-Rodino antitrust clearance and must be approved by the boards of Dominion and Dominion Midstream Partners LP.
Dominion – and other energy companies – have committed to build and own the proposed Atlantic Coast Pipeline. The 550-mile natural gas pipeline would run through parts of West Virginia, Virginia and North Carolina.