WGL Holdings, Inc. (NYSE: WGL), through its subsidiary WGL Midstream,
Inc. (WGL Midstream), is the lead investor in an agreement with three
other parties to create a company that will jointly develop and own,
together with Transcontinental Gas Pipe Line Company, LLC (Transco), the
Central Penn Line, a 177-mile pipeline originating in Susquehanna
County, Pennsylvania and extending to Lancaster County, Pennsylvania.
The Central Penn Line is the greenfield pipeline segment of Transco's
recently announced Atlantic Sunrise project which currently has a
projected in-service date in the second half of 2017.
As part of the agreement, WGL Midstream will invest approximately $410
million, resulting in a majority ownership interest in the company that
will co-own the Central Penn Line with Transco. This transaction is WGL
Midstream's second significant investment in natural gas infrastructure
in less than nine months, and it will provide WGL Midstream with
sustainable, regulated earnings. Also, this transaction reaffirms WGL's
strategy to grow a portfolio of infrastructure investments in clean and
efficient energy assets across the United States.
The Central Penn Line, as part of Atlantic Sunrise, is a natural gas
pipeline project designed to provide new firm gas transportation
capacity from various supply points in northeast Pennsylvania to a
delivery point into Transco's mainline in southeast Pennsylvania. The
pipeline will have the capacity to transport and deliver up to
approximately 1.7 million dekatherms per day of natural gas.
The Central Penn Line will be part of a transformational project in
light of the increased production of natural gas in the Marcellus
region, particularly in northern Pennsylvania. The project will be
instrumental in addressing the current challenge of transporting natural
gas from an area with abundant supply to existing established markets.
"As the need for natural gas continues to increase, WGL is well
positioned to meet future demand levels and will be able to continue to
provide more businesses and residential customers with the benefits of
safe and reliable natural gas," said WGL Chairman and CEO, Terry D.
McCallister. "We have a platform that not only reinforces our regional
natural gas delivery system, but also provides asset ownership."
In connection with the $410 million investment, WGL Midstream entered
into an agreement with Cabot Oil and Gas Corporation to purchase 500,000
dekatherms per day of natural gas over a 15 year term. The structure of
this agreement provides WGL Midstream with low-risk access to Marcellus
WGL will provide more information during its 2014 Analyst Meeting
webcast which will be held in New York on Thursday, March 13, 2014, from
9 a.m. to noon Eastern time. At the event, executives of WGL Holdings,
Inc., will review the company's financial objectives and discuss key
strategic and operating initiatives that support achieving those
This news release and other statements by us include forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 with respect to the outlook for earnings, revenues
and other future financial business performance or strategies and
expectations. Forward-looking statements are typically identified
by words such as, but not limited to, "estimates," "expects,"
"anticipates," "intends," "believes," "plans," and similar expressions,
or future or conditional verbs such as "will," "should," "would," and
"could." Although we believe such forward-looking statements are
based on reasonable assumptions, we cannot give assurance that every
objective will be achieved. Forward-looking statements speak only
as of today, and we assume no duty to update them. Factors that
could cause actual results to differ materially from those expressed or
implied include, but are not limited to, general economic conditions and
the factors discussed under the "Risk Factors" heading in our most
recent annual report on Form 10-K and other documents we have filed
with, or furnished to, the U.S. Securities and Exchange Commission.
Headquartered in Washington, D.C., WGL Holdings, Inc. has four operating
segments: (i) the regulated utility segment which primarily
consists of Washington Gas, a natural gas utility that serves over one
million customers throughout metropolitan Washington, D.C. and the
surrounding region; (ii) the retail energy-marketing segment
which consists of Washington Gas Energy Services, Inc., a third-party
marketer that competitively sells natural gas and electricity; (iii)
the commercial energy systems segment which consists of Washington Gas
Energy Systems, Inc., a provider of design-build energy efficiency
solutions to government and commercial clients, commercial solar
projects, and the operations of WGSW, a holding company formed to invest
in alternative energy assets and (iv) the wholesale energy
solutions segment which consists of WGL Midstream, an asset optimization
business that acquires, manages and optimizes natural gas storage and
transportation assets. Additional information about WGL Holdings, Inc.
is available on our website, www.wglholdings.com.
WGL Holdings, Inc.
Douglas Bonawitz, 202-624-6129
Source: WGL Holdings, Inc.
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