Energy Transfer to sell stake in Rover pipeline entity to Blackstone


(Adds details, background)
    July 31 (Reuters) - Energy Transfer Partners L.P. <ETP.N>
said on Monday it would sell a 32.44 percent stake in a firm
associated with the Rover pipeline project to Blackstone funds
for about $1.57 billion.
    The 700-mile Rover pipeline, the biggest natural gas
pipeline under construction in the United States, is designed to
transport 3.25 billion cubic feet per day of domestically
produced natural gas from the Marcellus and Utica Shale
production areas to markets across the United States as well as
Canada. [nBw28tTCPa]
    Construction of the $4.2-billion Rover pipeline has hit
several roadblocks in recent weeks.
    West Virginia'sDepartment of Environmental Protection told
the company last week to stop some work, citing environmental
    The pipeline already faces sanctions for violations in Ohio
and a federal ban on drilling activity that has delayed the
anticipated startup of the project's first phase to the late
summer from July. [nL1N1KF0O7]
    The Federal Energy Regulatory Commision on May 10 banned
Energy Transfer from starting new horizontal directional
drilling under waterways and roads following the release of
about 2 million gallons of drilling fluid, a clay and water mix,
into Tuscarawas River wetlands in Ohio.
    Blackstone Energy Partners and Blackstone Capital Partners
will buy a 49.9 percent interest in ET Rover Pipeline LLC, or
HoldCo, according to the agreement.
    The HoldCo owns a 65 percent interest in Rover Pipeline LLC.
The two companies are constructing the Rover pipeline and will
be the operator of the pipeline once in service, Energy Transfer
    Energy Transfer, which also operates the $3.8 billion Dakota
Access Pipeline, said it planned to use the proceeds to pay down
debt and help fund its current projects.
    The deal is expected to close in the fourth quarter, the
company said.
    Upon closing, the HoldCo will be 50.1 percent owned by
Energy Transfer and 49.9 percent by Blackstone.

 (Reporting by John Benny in Bengaluru; Editing by Sriraj
 ((; +1 646-223-8780; Reuters


Leave a Reply

Your email address will not be published.

eighteen + eleven =