Dallas-based Atmos Energy Corp. has completed its purchase of Louisiana Gas Service Co. (LGS) and LGS Natural Gas Co. from Citizens Communications Co. for $365 million in cash, giving it a customer base of almost 279,000, which company officials said makes it the fifth largest pure gas utility in the United States and the largest in Louisiana. The deal was announced last year (see Daily GPI, April 14, 2000).

With the acquisition, LGS operations will be integrated with Atmos’ Trans Louisiana Gas Co. in the next few months and will operate under a newly created business unit identity, Atmos Energy Louisiana. LGS’s utility operations serve customers in Monroe, LA and communities surrounding the City of New Orleans, including Metarie and Harvey in Jefferson Parish. LGS also serves the East Baton Rouge Parish and areas adjacent to Baton Rouge.

The LGS Natural Gas Co. operations include non-regulated gas sales to industrial customers and interests in two natural gas pipelines and a salt dome storage field. Those operations also will be integrated with Atmos’ existing non-utility operations.

CEO Robert W. Best said Atmos sees opportunities for continued growth with the Louisiana expansion, noting that Atmos has doubled its customer base in the past four years.

Headquartered in Dallas, Atmos distributes natural gas to about 1.4 million customers in 11 states through Atmos Energy Louisiana, Energas Co., Greeley Gas Co., United Cities Gas Co. and Western Kentucky Gas Co. Its non-utility operations include Woodward Marketing, Atmos Power Systems Inc. and an indirect equity interest in Heritage Propane Partners.

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