The Sid Richardson purchase includes 4,000 miles of natural gas and gas liquids pipe in the Permian Basin in West Texas and New Mexico, about 450 MMcf/d of cryogenic processing capacity among six interconnected plants, 930 MMcf/d of high-pressure treating capacity and a gas liquids and gas marketing operation based in Houston and Fort Worth.

“PG Energy is a well-managed natural gas distribution company with a significant presence in northeastern and central Pennsylvania. The sale of PG Energy in conjunction with the acquisition of Sid Richardson Energy Services will allow Southern Union to continue to grow as one of the country’s leading energy companies,” said George L. Lindemann, Southern Union’s CEO. “Because Southern Union will no longer have a large employee base in Pennsylvania, we will be consolidating our corporate operations and activities in Houston.”

Both companies’ boards of directors have approved the transaction, which is subject to antitrust clearance, approval by the Pennsylvania Public Utilities Commission and other customary closing conditions. The sale is expected to close in the third quarter of 2006.

Southern Union started on its present course in 2003 with the acquisition of the 6,300-mile, 2.7 Bcf/d capacity Panhandle Eastern and 4,100 mile, 1.7 Bcf/d Trunkline pipelines and the large Trunkline LNG terminal at Lake Charles, LA. The purchase included the offshore gathering line Sea Robin Pipeline (see Daily GPI, May 13, 2003).

In 2004 it won the bid for Cross Country Energy, holding the remainder of bankrupt Enron’s pipeline interests, including the 2,400-mile Transwestern Pipeline, half interest in the 5,000-mile Florida Gas Transmission and a part interest through Northern Border Partners in Northern Border Pipeline Co., Midwestern Gas Transmission, Viking Gas Transmission, and Guardian Pipeline LLC (see Daily GPI, Sept. 3, 2004).

Southern Union retains LDC interests through its Missouri Gas Energy, and New England Gas Co.

PG Energy, headquartered in Wilkes-Barre, PA, is a natural gas distribution company serving approximately 158,000 customers in 13 counties throughout northeastern and central Pennsylvania.

UGI is a holding company with propane marketing, utility and energy marketing subsidiaries. Through subsidiaries, UGI owns 44% of AmeriGas Partners, LP, the nation’s largest retail propane marketer, and owns Antargaz, one of the largest LPG distributors in France.

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