By the OGJ Online Staff
HOUSTON, July 31 -- Atmos Energy Corp., Dallas, has agreed to acquire storage and associated pipeline facilities in Kentucky from Kentucky Pipeline & Storage Co. Inc. for $13 million.
The deal is subject to approval from the Kentucky Public Service Commission.
The nonutility assets contain 2 bcf of cushion gas and 1.8 bcf of working gas capacity. Currently, Atmos affiliate Woodward Marketing LLC manages 4.3 bcf of cushion gas and 5.1 bcf of working gas capacity for Atmos.
"Upon the completion of this transaction, Woodward will become one of the principal service providers of the Texas Gas Pipeline," said Robert W. Best, chairman, president and CEO of Atmos.
"The additional asset base will enable Woodward to develop market share in Kentucky through the sale of new and expanded services to the state's municipal and industrial customers," he said.
Atmos distributes natural gas to 1.4 million customers in 11 states through operating divisions Atmos Energy Louisiana, Energas Co., Greeley Gas Co., United Cities Gas Co., and Western Kentucky Gas Co.