Columbia Pipeline Adds Williams Partners for Pennant JV
Texas-based Columbia Pipeline Group, Inc.CPGX and Columbia Pipeline Partners LP CPPL announced that Pennant Midstream, LLC, a joint venture between them and Harvest Pipeline Company, have welcomed a new partner on board. An affiliate of Williams Partners L.P. WPZ - Three Rivers Midstream LLC - has joined Pennant Midstream.
Pennant Midstream involves an investment of $400 million which includes 41 miles of wet gas field-gathering and high-pressure pipeline facilities. The pipeline project owns the Hickory Bend cryogenic natural gas processing plant and related gathering systems in Pennsylvania and Ohio.
Columbia Pipeline Group believes that the addition of Three Rivers Midstream in the joint venture will meaningfully contribute to Pennant Midstream's long-term infrastructure investment opportunities. Three Rivers' commercial and operational expertise in the Appalachian Basin will enhance Columbia Pipeline'sleadership in the Utica Shale region.
This agreement has increased Pennant's acreage three times to 500,000 acres in Mahoning Valley. Williams Partners has an initial ownership of 5% in the venture which can, by certain investment funding, be increased to 33.3% over the defined period of investment.
Columbia Pipeline's Columbia Gas Transmission, LLC recently placed East Side Expansion project into service. The pipeline creates additional capacity of 312 million cubic feet per day on the Columbia Pipeline's system and is its landmark project, contrived to meet the needs of both producers and end users over the coming years (read: Columbia Pipeline's East Side Expansion Enters Service ).
Columbia Pipeline Group is currently on an expansion mode, projecting to triple its scale of operations over the next five years. The company has a planned investment of over $10 billion lined up for the next few years.
Columbia Pipeline Group currently has a Zacks Rank #3 (Hold). VTTI Energy Partners LP VTTI is a better-ranked oil and gas operator, carrying a Zacks Rank #2 (Buy).