By OGJ editors
HOUSTON, Oct. 17 -- National Fuel Gas Co. inked an agreement with a unit of Duke Energy Corp. to acquire its Empire State natural gas pipeline for $240 million, which includes $60 million in assumed debt.
According to the deal, Buffalo, NY-based National Fuel will acquire all outstanding shares of Empire State Pipeline Co. Inc. and St. Clair Pipeline Co. Inc., each of which holds 50% interest in Empire. Duke Energy unit Duke Energy Gas Transmission currently operates the New York intrastate pipeline system.
Duke Energy, based in Charlotte, NC, acquired the 24-in. Empire State system as part of its $8.5 billion acquisition of Westcoast Energy Inc. of Vancouver, BC, late last year (OGJ Online, Sept. 21, 2001). The 157-mile Empire line extends from the US-Canadian border at the Niagara River's Chippawa Channel to an interconnection point with other systems near Syracuse, NY. The system, which was constructed in 1992 and put into service a year later, has the capacity to transport 525 MMcfd.
Acquisition of the Empire system, said Philip C. Ackerman, National Fuel chairman, president, and CEO, will "better position" the company to deliver gas to growing markets along the US East Coast.
National Fuel expects the deal to close in December or the first quarter of 2003.
