WGL Holdings, Inc. Announces Investment in Constitution Pipeline
WGL Holdings, Inc. (NYSE: WGL), through its subsidiary, Capitol Energy
Ventures Corp. (CEV), today announced its equity investment in
Constitution Pipeline Company, LLC. The fully subscribed natural gas
pipeline project will transport natural gas from the Marcellus region in
northern Pennsylvania to major northeastern markets. CEV joins Williams
Partners L.P., Cabot Oil and Gas Corporation and Piedmont Natural Gas in
the project, and will invest an estimated $68 million.
"Our involvement in the Constitution Pipeline is a demonstration of our
continued execution of our strategy to grow our portfolio of
infrastructure assets. The project also adds incremental earnings growth
from a regulated investment," said WGL Holdings, Inc., Chairman and CEO
Terry D. McCallister. "We are proud to join such highly regarded
companies like Cabot Oil and Gas, Piedmont Natural Gas, and Williams
Partners, as we work together to realize the growing potential of the
abundant natural gas supplies from the Marcellus Shale formation."
Construction of the pipeline is expected to begin in the third quarter
2014. The project is scheduled to be in service by March 2015, and
transport at least 650,000 dekatherms of natural gas per day or the
equivalent of providing 3 million homes daily with natural gas. An
affiliate of Williams Partners will construct, operate and maintain the
new 30-inch, 121-mile long transmission pipeline.
WGL Holdings, through its subsidiary CEV, will hold a 10 percent share
in the pipeline venture. Williams Partners will hold a 41 percent
ownership share, Cabot Oil and Gas a 25 percent share, Piedmont Natural
Gas, a 24 percent share through its wholly owned subsidiary.
Fully contracted with long-term commitments from established natural gas
producers currently operating in Pennsylvania, the pipeline will
originate from the Marcellus production areas in Susquehanna County,
Pa., and interconnect with the Iroquois Gas Transmission and Tennessee
Gas Pipeline systems in Schoharie County, N.Y.
WGL Holdings is a provider of a broad range of energy solutions from
clean, efficient natural gas and renewables to energy efficiency
offerings. This portfolio of solutions assists customers across 21
states to find the answers to their energy questions. The addition of
this asset demonstrates our continued commitment to identifying
high-value opportunities that serve customers and shareholders.
In June, Constitution Pipeline expects to file a formal certificate
application with Federal Energy Regulatory Commission (FERC), the
federal agency charged with the regulation of interstate pipelines. More
information about the Constitution Pipeline project can be found at www.constitutionpipeline.com.
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.
About WGL Holdings, Inc.
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 Capitol Energy Ventures Corp., 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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