South Jersey Industries (SJI) has exited the retail natural gas business, announcing Monday that it has divested all of the retail gas assets held by affiliates South Jersey Energy and Open Flow Energy to Pennsylvania-based UGI Energy Services LLC in a deal that closed last week.
Terms of the transaction were not disclosed. UGI Energy, a subsidiary of UGI Corp., acquired SJI’s 2,500 commercial and industrial contracts with customers located primarily in New Jersey, Pennsylvania and Ohio, including supply service to 6,000 locations. The acquisition, UGI Energy said, continues its “strategic buildout” of the retail natural gas business.
“UGI views the acquisition of South Jersey Energy’s retail natural gas business as part of our strategy to grow through transactions that complement our core business and bring value to consumers and the company,” said CEO John Walsh.
UGI Energy markets natural gas, electricity and liquid fuels to commercial, institutional and industrial customers at 43,000 locations across 10 states in the Mid-Atlantic and Northeast, along with Washington, DC. The company also owns and operates midstream assets such as liquefied natural gas and underground storage, and pipelines.
For SJI, the sale of the deregulated gas assets allows the company to turn its attention to delivering natural gas through three primary subsidiaries, South Jersey Gas, Elizabethtown Gas and Elkton Gas customers in New Jersey and Maryland.
“The sale of these assets represents another step in our ongoing effort to transform our business by monetizing noncore, non-regulated assets and operations and refocusing our business to emphasize high-quality, regulated earnings growth.
SJI said it would continue serving its retail electric customers through South Jersey Energy.