US energy delivery company Consolidated Edison (Con Edison), through its fully-owned subsidiary Con Edison Transmission, has entered into definitive agreements with Crestwood Equity Partners to create Stagecoach Gas Services, a joint venture to own and develop Crestwood's existing gas pipeline and storage business located in northern Pennsylvania and southern New York (United States). Crestwood will transfer its gas storage and pipeline activities to Stagecoach, in which Con Edison Transmission will acquire a 50% stake for US$975m. The transaction is expected to be completed in the second quarter of 2016.
Stagecoach Gas Services will own four gas storage facilities (Stagecoach, Thomas Corners, Steuben and Seneca Lake) with a combined storage capacity of approximately 41 Bcf (1,160 mcm) and three natural gas pipelines (MARC I, North/South and the East Pipeline) with a combined throughput capacity of 2,960 mcf/d (83.6 mcm/d, i.e.30.5 bcm/year). The pipelines supply gas to several leading US gas demand centers, including New York City and New England, and are almost fully contracted.