NextEra Energy Partners has signed a definitive agreement to acquire Meade Pipeline Co in an approximately US$1.37 billion transaction.
The companies have reached an agreement for NextEra to acquire the long-term contracted natural gas pipeline including roughly US$90 million in future capital contributions through 2022, which are related to an expansion opportunity.
Meade Pipeline Co owns a 39.2 per cent interest in the Central Penn Line, a 298 km intrastate natural gas pipeline with the capacity to transport and deliver approximately 1.7 Bcf/d of natural gas.
NextEra Chair and CEO Jim Robo said the acquisition will assist the company in remaining well-positioned with its future growth objectives.
“We are pleased to have reached a definite agreement to acquire Meade Pipeline and its interests in the Central Penn Line, which is backed by an attractive fixed-lease payment with a high-credit quality customer, and further expand NextEra Energy Partners’ investment in long-term contracted natural gas pipelines, helping mitigate any potential resource volatility in the portfolio,” said Mr Robo.
The company does not expect to need additional partnership acquisitions until 2021 to meet its growth objectives.
For more information visit the NextEra website.
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