UGI acquires Stonehenge Appalachia Midstream Natural Gas Gathering System

Valley Forge-based UGI Corporation announced Tuesday that its subsidiary, UGI Energy Services, LLC (UGIES), had entered into an agreement to acquire Stonehenge Appalachia, LLC from Stonehenge Energy Holdings, LLC for approximately $190 million.

The Stonehenge system, located in Butler County, Pa., includes more than 47 miles of pipeline and associated compression assets and has a gathering capacity of 130 million cubic feet per day.

“We are very pleased with this investment and the opportunity to grow our presence in the Appalachian Basin,” said Robert F. Beard, executive vice president of Natural Gas, Global Engineering, Construction, and Procurement. “When we acquired the assets of Columbia Midstream Group in 2019, we committed to additional investments to build or buy quality systems in the region. The acquisition of Stonehenge, in addition to our recent purchase of an ownership stake in the Pine Run gathering system, demonstrates our commitment to the Appalachian basin, which averaged a record 31.9 billion cubic feet per day of production in the first half of 2021, the highest for a six month period since production began in 2008.”

The transaction would provide the company with significant acreage dedications n some of the most prolific production areas in the Appalachian Basin, the company said.

“This investment is consistent with our strategy of delivering reliable earnings growth while continuing to rebalance our business activities with increasing investments in natural gas and renewables,” said Roger Perreault, president and CEO of UGI. “We are pleased to enhance our natural gas gathering capabilities through this investment in well-positioned assets in the Appalachian Basin.”

The transaction is subject to the customary regulatory and other closing conditions, including Federal antitrust clearances. Assuming the transaction meets all conditions, it is expected to close by Jan. 31, 2022.