Norse Pipeline Buys Columbia's Project Penny
Columbia Gas Transmission sold its Project Penny gathering
pipeline and compressor facilities in Pennsylvania and New York to
Norse Pipeline for $21.5 million. Norse is an affiliate of Schanson
Energy LLC, the energy investment arm of Schanson Capital
Management of Los Angeles, and Nornew Inc., an integrated oil and
gas exploration company focused mainly on the Appalachian Basin and
the Maritime provinces in Atlantic Canada. Norse Pipeline's
domestic operations are based in Houston and Jamestown, NY.
Project Penny consists of seven compressor station locations
and about 341 miles of gas pipeline in northwestern Pennsylvania
and southwestern New York. Constructed in the late 1970s and early
1980s, the Project Penny facilities have no direct connection to
Columbia Transmission's other pipeline facilities and are not
necessary for the company to provide its core services of
interstate gas transportation and storage.
The purchase of Project Penny makes Norse Pipeline the largest
gas gatherer in the northern Appalachian Basin, with access to
about 6,500 gas wells in New York and Pennsylvania and the capacity
to gather more than 100,000 Mcf/d.
"This acquisition will provide local gas greater access to local
markets and should provide Appalachian Basin producers the
opportunity to compete very effectively with natural gas being
produced in the Gulf Coast and Southwest," said Oivind Risberg,
Norse Pipeline president.
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