Dominion Midstream to buy Questar Pipeline
Dominion Midstream Partners LP has agreed to acquire Questar Pipeline LLC from Dominion Resources Inc. for $1.725 billion including debt. The deal has an anticipated effective date of Dec. 1.
Questar has 27,500 miles of nautral gas distribution pipeline, 3,400 miles of gas transmission pipeline, and 56 bcf of working gas storage in Colorado, Utah, and Wyoming.
"Dominion Midstream's planned acquisition of Questar Pipeline and related financing have been anticipated as part of the financing structure of the Dominion-Questar Corporation combination since it was announced in February 2016,” explained Thomas F. Farrell II, chairman, president, and chief executive officer of Dominion and chairman and chief executive officer of Dominion Midstream.
The $4.4-billion Dominion Resources and Questar merger closed in September.
“The capital generated from the Questar Pipeline dropdown will allow Dominion to pay down debt while supporting its earnings and dividend growth targets,” Farrell said.