Piedmont to join Williams Partners L.P. and Cabot Oil and Gas Corporation as equity participant in natural gas pipeline project to serve major northeastern markets by 2015
CHARLOTTE, N.C., Nov. 13, 2012 - Piedmont Natural Gas (NYSE: PNY) today announced its equity investment in Constitution Pipeline Company, LLC, a natural gas pipeline project slated to transport natural gas supplies from the prolific Marcellus supply region in northern Pennsylvania to major northeastern markets. The project is scheduled to be in service by March 2015. Piedmont Natural Gas, through its wholly-owned subsidiary Piedmont Constitution Pipeline Company, LLC, joins Williams Partners L.P. (NYSE: WPZ) and Cabot Oil and Gas Corporation (NYSE: COG) as a 24 percent equity participant in the joint venture, and will invest an estimated $180 million in the new project.
Thomas E. Skains, Piedmont’s Chairman, President, and CEO commented on the Company’s involvement, “Piedmont’s equity participation in the Constitution Pipeline project aligns very well with our strategic focus on expanding our investments in complementary energy-related businesses as a means of enhancing shareholder value.” Skains continued, “We are excited about making an investment in strategic pipeline infrastructure in the Marcellus supply basin that will transport clean, low cost natural gas supplies to premium East Coast markets and provide substantial benefits for both natural gas producers and consumers. We are equally excited to be joining such strong joint venture partners as Williams Partners and Cabot Oil and Gas, as both are outstanding companies and widely respected in our industry.”
An affiliate of Williams Partners will construct, operate, and maintain the new 30-inch, 121-mile long transmission pipeline that is being designed with sufficient capacity to transport 650,000 dekatherms of natural gas per day (a quantity of natural gas that can serve approximately 3 million homes) from established Marcellus production areas in Susquehanna County of northern Pennsylvania. The pipeline will connect with the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, New York and is already fully contracted with long-term commitments from established natural gas producers currently operating in Pennsylvania; Piedmont will not be a customer of Constitution Pipeline. Williams Partners will maintain a 51 percent ownership share, Cabot Oil and Gas a 25 percent share, and Piedmont Natural Gas, through its wholly owned subsidiary, a 24 percent share in the pipeline venture.
“Williams Partners enjoys a long-term, mutually beneficial relationship with Piedmont as a customer on our Transco pipeline system and as a joint venture partner in existing pipeline and storage infrastructure projects in North Carolina. We are delighted to expand that relationship with Piedmont as a new partner in the Constitution Pipeline,” said Alan Armstrong, chief executive officer of Williams Partners. “Constitution is a key component of the Susquehanna Supply Hub that Williams Partners is expanding to connect Marcellus Shale producers like Cabot and Southwestern Energy with the highest-value markets.
“The Constitution Pipeline is a great example of the kind of leadership and investment –from energy-infrastructure providers like Williams Partners, utilities like Piedmont and producers like Cabot – that we believe is key to building the foundation our nation needs to realize the full benefits of the new abundance of long-lived, clean-burning natural gas supplies in Pennsylvania’s Marcellus Shale and elsewhere in North America.”
The Constitution Pipeline project was first announced in February 2012 by Williams Partners and Cabot Oil and Gas. Construction of the new pipeline is expected to begin in April 2014 with an in-service date of March 2015. Constitution Pipeline is currently in the pre-filing process with the Federal Energy Regulatory Commission (FERC), the federal agency charged with the regulation of interstate pipelines. Constitution Pipeline plans to file a formal certificate application with the FERC in the spring of 2013. More information about the Constitution Pipeline project can be found at www.constitutionpipeline.com.
This press release contains forward-looking statements. These statements are based on management's current expectations and information currently available and are believed to be reasonable and are made in good faith. However, the forward-looking statements are subject to future events, risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the statements. Factors that may make the actual results differ from anticipated results include, but are not limited to, weather conditions, rate of customer growth, the cost and availability of natural gas, competition from other energy providers, new legislation and regulations and application of existing laws and regulations, economic and capital market conditions, the cost and availability of labor and materials and other uncertainties, all of which are difficult to predict and some of which are beyond our control. For these reasons, you should not place undue reliance on these forward-looking statements when making investment decisions. The words "expect," "believe," "project," "anticipate," "intend," "should," "could," "assume," "can," "estimate," "forecast," "future," "indicate," "outlook," "plan," "predict," "seek," "target," "would," and variations of such words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are only as of the date they are made and we do not undertake any obligation to update publicly any forward-looking statement, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in Piedmont's latest Forms 10-K and 10-Q, which are available on the SEC's website at www.sec.gov.
About Piedmont Natural Gas
Piedmont Natural Gas is an energy services company primarily engaged in the distribution of natural gas to more than one million residential, commercial and industrial utility customers in North Carolina, South Carolina and Tennessee, including 51,600 customers served by municipalities who are wholesale customers. Our subsidiaries are invested in joint venture, energy-related businesses, including unregulated retail natural gas marketing, interstate natural gas storage and intrastate natural gas transportation. More information about Piedmont Natural Gas is available on the Internet at www.piedmontng.com.
About Williams Partners L.P.
Williams Partners L.P. is a leading diversified master limited partnership focused on natural gas transportation; gathering, treating, and processing; storage; natural gas liquid (NGL) fractionation; and oil transportation. The partnership owns interests in three major interstate natural gas pipelines that, combined, deliver 14 percent of the natural gas consumed in the United States. The partnership’s gathering and processing assets include large-scale operations in the U.S. Rocky Mountains and both onshore and offshore along the Gulf of Mexico. Williams (NYSE: WMB) owns approximately 70 percent of Williams Partners, including the general-partner interest. More information is available at www.williamslp.com, where the partnership routinely posts important information.
About Cabot Oil and Gas
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent natural gas producer, with its entire resource base located in the continental United States. For additional information, visit the Company's Internet homepage at www.cabotog.com.
For more information on Piedmont's investment in the Constitution Pipeline, visit our FAQ page at www.piedmontng.com/investors/constitutionfaq.aspx.