Appalachian-based NGAS Gathering LLC has closed a $18 million acquisition of a 116-mile natural gas gathering system from Duke Energy Gas Services Inc. The system, with current throughput of 14 MMcf/d, spans parts of southeastern Kentucky and southwestern Virginia and ties into Duke’s East Tennessee Natural Gas pipeline.

NGAS, which announced the acquisition in January (see Daily GPI, Jan. 20), said the newly acquired system connects to gathering systems it owns that service its production from 177,000 acres of core properties, including the Leatherwood, Straight Creek and Stone Mountain fields. The system has a throughput capacity of 24 MMcf/d, and with compression upgrades, it could exceed 45 MMcf/d.

“Our pipeline and gathering system is a key asset and competitive advantage for us, and we are very excited to add the Duke Energy pipeline to our already extensive 300 miles of gathering system,” said NGAS CEO William S. Daugherty. “The system acquired ensures deliverability from our core focus area in the Appalachian Basin to the natural gas market in the eastern United States, as well as enhances our competitive position in the region.”

Headquartered in Lexington, KY, NGAS owns interests in nearly 600 wells and controls more than 250,000 acres in eastern Kentucky. NGAS also owns more than 170 miles of gas gathering pipelines.

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