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Norse Pipeline Buys Columbia's Project Penny

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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