Atmos Energy Corp.’s nonutility holding Co. Atmos Energy Holdings Inc., has bought some Kentucky-based market area storage facilities and associated pipeline assets for $13 million in cash. The assets will be utilized by subsidiary Woodward Marketing LLC, which also recently expanded its operations though the $3 million purchase of Innovative Gas Services Inc. (IGS) and the common stock of Southern Resources Inc.

Atmos announced plans to acquire the East Diamond Storage Field and pipeline facility assets in July. The storage field contains 1.8 Bcf of working gas capacity and has deliverability of about 20 MMcf/d.

The IGS and Southern Resources marketing operations are based in Owensboro, KY, and provide service primarily to industrial and commercial manufacturing customers served by Williams’ Texas Gas pipeline system.

“The acquisitions of the East Diamond Storage Field and the IGS and Southern Resources marketing companies significantly increase Woodward Marketing’s competitive position in Kentucky,” said Atmos Energy CEO Robert W. Best.

“Utilizing the East Diamond storage assets affords Woodward Marketing the opportunity to solidify and expand its position as a principal provider on the Texas Gas system,” said J.D. Woodward, Atmos’ senior vice president of nonutility operations. He added that IGS and Southern Resources will provide Woodward Marketing “immediate customer growth and established customer relationships.”

Since 1988, Woodward Marketing’s natural gas sales to customers in Kentucky have grown nearly eight fold, from 18.5 Mcf/d to 140 Mcf/d. The acquired gas marketing companies will add 50 MMcf/d of new customer sales.

Atmos Energy of Dallas, TX, distributes gas to about 1.4 million customers in 11 states through its utility operating divisions — Atmos Energy Louisiana, Energas Co., Greeley Gas Co., United Cities Gas Co. and Western Kentucky Gas Co.

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