Algonquin Power to buy New York gas distributor from Enbridge for US$70M
The St. Lawrence Gas Company operates 685 miles of natural gas pipelines across three U.S. counties and serves 16,000 customers
TORONTO—Ontario utility Algonquin Power & Utilities Corp. is expanding its natural gas distribution business in New York state with the purchase of an Enbridge Inc.-owned gas company.
The two firms said Aug 31 that Algonquin will acquire the St. Lawrence Gas Company Inc. for US$70 million in cash, not including the company’s debt.
The distributor serves 16,000 customers in upstate New York and operates 685 miles of natural gas pipelines across three U.S. counties. Algonquin noted it also recently completed work on a 48-mile backbone gas distribution expansion into a neighbouring fourth county.
“St. Lawrence Gas represents an attractive opportunity to acquire an established utility franchise which complements the regulated natural gas operations in our Liberty Utilities East Region,” Ian Robertson, Algonquin’s CEO, said in a statement.
Enbridge said the sale aligns with its strategic plan and will boost its competitiveness.
The two Canadian companies expect the deal to close in 2018.