GE, Caisse de Depot to to Buy Gas Pipeline From Morgan StanleyKelly Gilblom
General Electric Co. and Canada’s second-largest pension fund agreed to buy a 9,300-kilometer (5,800-mile) U.S. natural gas pipeline system from Morgan Stanley for an undisclosed price.
GE Financial Services and Caisse de Depot et placement du Quebec will buy 111-year-old Southern Star Central, which operates the pipeline system that stretches across eight U.S. states and mainly serves Kansas and Missouri, the pension fund said in a statement Friday.
Gas production in the U.S., especially in the middle of the continent, has surged as advanced extraction technologies allow producers to access hydrocarbons trapped in shale rock formations.
“For la Caisse, this is a high-quality asset that is strategically well-located,” Macky Tall, senior vice president of infrastructure at the Montreal-based pension fund, said in the statement.