The subsidiary of WGL Holdings Inc, Capitol Energy Ventures Corp announced the equity investment in Constitution Pipeline Co LLC. The natural gas pipeline project would be transporting natural gas from the Marcellus region located in northern Pennsylvania to major demand markets.
Joining Capitol Energy are Williams Partners LP, Cabot Oil and Gas Corp as well as Piedmont Natural Gas in investing in the project. The total investment is said to reach US$68 million.
WGL's CEV would hold a 10% share in the pipeline project, while Williams Partners would hold a 41% stake. Cabot Oil would hold a 25% share while Piedmont would be holding 24% through its subsidiary.
According to WGL Holdings Inc Chairman and CEO Terry D. McCallister, "Our involvement in the Constitution Pipeline is a demonstration of our continued execution of our strategy to grow our portfolio of infrastructure assets. The project also adds incremental earnings growth from a regulated investment. We are proud to join such highly regarded companies like Cabot Oil and Gas, Piedmont Natural Gas, and Williams Partners, as we work together to realize the growing potential of the abundant natural gas supplies from the Marcellus Shale formation."
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