Piedmont Natural Gas reported Tuesday that it has closed on its purchase of North Carolina Gas Service (NCGS), the North Carolina natural gas distribution division of NUI Corp., for approximately $26 million. First announced in mid-May, the sale agreement has received all necessary regulatory approvals (see Daily GPI, May 16).

NCGS delivers gas to approximately 14,000 customers in Rockingham and Stokes counties, which are contiguous to Piedmont’s existing service territory. Piedmont said the purchase is consistent with its core business growth strategy, which includes pursuing acquisitions and business ventures in the growing southeastern markets.

“We are very proud to include the former customers of NCGS among the 455,000 customers we now serve in North Carolina,” said Ware Schiefer, Piedmont CEO. “All of us at Piedmont remain committed to meeting or exceeding our customers’ expectations, and to becoming meaningful contributors to the new communities we now serve as a result of this acquisition.”

The companies both agreed on a smooth transition to ensure that customers of NCGS will not experience any inconveniences as a result of the sale. Piedmont immediately began serving North Carolina Gas customers upon completion of the sale, and is sending letters to all former NCGS customers informing them of the change in ownership. Piedmont said for the time being former customers of North Carolina Gas Service may use the same telephone numbers that they have been using for gas service, emergency or billing questions.

Charlotte-based Piedmont distributes natural gas to 725,000 residential, commercial and industrial customers in North Carolina, South Carolina and Tennessee. The company is the second-largest natural gas utility in the Southeast.

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