WGL Holdings, Inc. Announces Investment in Constitution Pipeline
WASHINGTON -- May 30, 2013
WGL Holdings, Inc. (NYSE: WGL), through its subsidiary, Capitol Energy
Ventures Corp. (CEV), today announced its equity investment in Constitution
Pipeline Company, LLC. The fully subscribed natural gas pipeline project will
transport natural gas from the Marcellus region in northern Pennsylvania to
major northeastern markets. CEV joins Williams Partners L.P., Cabot Oil and
Gas Corporation and Piedmont Natural Gas in the project, and will invest an
estimated $68 million.
“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,” said WGL Holdings, Inc., Chairman and CEO Terry D. McCallister.
“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
Construction of the pipeline is expected to begin in the third quarter 2014.
The project is scheduled to be in service by March 2015, and transport at
least 650,000 dekatherms of natural gas per day or the equivalent of providing
3 million homes daily with natural gas. An affiliate of Williams Partners will
construct, operate and maintain the new 30-inch, 121-mile long transmission
WGL Holdings, through its subsidiary CEV, will hold a 10 percent share in the
pipeline venture. Williams Partners will hold a 41 percent ownership share,
Cabot Oil and Gas a 25 percent share, Piedmont Natural Gas, a 24 percent share
through its wholly owned subsidiary.
Fully contracted with long-term commitments from established natural gas
producers currently operating in Pennsylvania, the pipeline will originate
from the Marcellus production areas in Susquehanna County, Pa., and
interconnect with the Iroquois Gas Transmission and Tennessee Gas Pipeline
systems in Schoharie County, N.Y.
WGL Holdings is a provider of a broad range of energy solutions from clean,
efficient natural gas and renewables to energy efficiency offerings. This
portfolio of solutions assists customers across 21 states to find the answers
to their energy questions. The addition of this asset demonstrates our
continued commitment to identifying high-value opportunities that serve
customers and shareholders.
In June, Constitution Pipeline expects to file a formal certificate
application with Federal Energy Regulatory Commission (FERC), the federal
agency charged with the regulation of interstate pipelines. More information
about the Constitution Pipeline project can be found
This news release and other statements by us include forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 with respect to the outlook for earnings, revenues and other future
financial business performance or strategies and expectations. Forward-looking
statements are typically identified by words such as, but not limited to,
“estimates,” “expects,” “anticipates,” “intends,” “believes,” “plans,” and
similar expressions, or future or conditional verbs such as “will,” “should,”
“would,” and “could.” Although we believe such forward-looking statements are
based on reasonable assumptions, we cannot give assurance that every objective
will be achieved. Forward-looking statements speak only as of today, and we
assume no duty to update them. Factors that could cause actual results to
differ materially from those expressed or implied include, but are not limited
to, general economic conditions and the factors discussed under the “Risk
Factors” heading in our most recent annual report on Form 10-K and other
documents we have filed with, or furnished to, the U.S. Securities and
About WGL Holdings, Inc.
Headquartered in Washington, D.C., WGL Holdings, Inc. has four operating
segments: (i) the regulated utility segment which primarily consists of
Washington Gas, a natural gas utility that serves over one million customers
throughout metropolitan Washington, D.C., and the surrounding region; (ii) the
retail energy-marketing segment which consists of Washington Gas Energy
Services, Inc., a third-party marketer that competitively sells natural gas
and electricity; (iii) the commercial energy systems segment which consists of
Washington Gas Energy Systems, Inc., a provider of design-build energy
efficiency solutions to government and commercial clients, commercial solar
projects, and the operations of WGSW, a holding company formed to invest in
alternative energy assets and (iv) the wholesale energy solutions segment
which consists of Capitol Energy Ventures Corp., an asset optimization
business that acquires, manages and optimizes natural gas storage and
transportation assets. Additional information about WGL Holdings, Inc. is
available on our website, www.wglholdings.com.
WGL Holdings, Inc.
Ruben Rodriguez, 202-624-6620
Douglas Bonawitz, 202-624-6129
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