The US utility Southern Company and its affiliate Southern Company Gas have divested their utility operating divisions Elizabethtown Gas and Elkton Gas to South Jersey Industries in an all-cash transaction for approximately US$1.7bn. The transaction is subject to regulatory approvals and is expected to be completed in the third quarter of 2018.
Southern Company Gas supplies natural gas to approximately 4.6 million utility customers and 1 million retail customers through its regulated distribution companies in seven states. Elizabethtown Gas provides natural gas to around 286,000 residential, business and industrial natural gas customers in New Jersey while Elkton Gas today serves approximately 6,000 residential and business customers in the greater Elkton area (Maryland).
South Jersey Industries is a US energy services holding company with a natural gas utility, South Jersey Gas, which serves approximately 381,000 residential, commercial and industrial customers in New Jersey (US).