New York-based utility Corning Natural Gas Holding Corp. said Thursday it has reached a deal to take full ownership of Leatherstocking Gas Co. and Leatherstocking Pipeline Co., formed in 2013 to link regional end-users with increasing shale gas supplies in Northeast Pennsylvania.
Corning, which is traded over the counter, said it has signed a deal to buy out an affiliate of Mirabito Holdings Inc.’s 50% stake in Leatherstocking. Terms of the transaction were not disclosed. If completed, it would give Corning 100% ownership.
Leatherstocking serves 250 residential customers and 95 commercial and industrial customers in Susquehanna County, PA, which leads the state in unconventional gas production, with 1.25 Tcf of volumes reported over the first nine months of last year, according to the Pennsylvania Independent Fiscal Office. The utility has expanded its local distribution network since it was founded, and it also has a limited footprint in New York state.
Corning said it would form a new joint venture with Mirabito Regulated Industries to own Leatherstocking’s assets in New York.
“The company believes this purchase will enhance our subsidiary holdings and allow for further system growth in our Pennsylvania franchise territories,” Corning CEO Mike German said. “It will also reduce administrative overhead and streamline management of our utility subsidiaries.”
Corning operates 450 miles of pipeline serving 15,000 customers in the Southern Tier and central regions of New York. Mirabito provides energy products throughout New York, Massachusetts and Connecticut.