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The
joint venture will own natural gas pipelines and storage
facilities that provide a critical link between natural gas
fields and Northeast U.S. markets.
The new entity, Stagecoach Gas Services LLC, will have an
implied market value of about $2 billion, the companies said in
a statement.
The transaction is expected to be substantially completed in the
second quarter, they said.
"We are very pleased to enter into a strategic partnership with
Con Edison to own and expand these important pipeline and
storage assets as local supply sources are developed to meet the
growing demand for natural gas in the Northeast markets," Robert
Phillips, chief executive of Crestwood's general partner, said.
Stagecoach Gas Services, which will be managed by Crestwood,
will own four natural gas storage facilities with a combined
storage capacity of about 41 billions of cubic feet
equivalent,and three natural gas pipelines with a combined
throughput capacity of 2,960 millions of cubic feet equivalent
per day.
Barclays was Con Edison's financial adviser and Latham and
Watkins LLP its legal adviser. Morgan Stanley was Crestwood's
financial adviser and Husch Blackwell LLP its legal counsel.
(Reporting by Swetha Gopinath and Vishaka George in Bengaluru;
Editing by Anil D'Silva and Maju Samuel)
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