WASHINGTON (dpa-AFX) - Energy Transfer Partners L.P. (ETP) Monday said its wholly owned subsidiaries, Energy Transfer Interstate Holdings LLC and ET Rover Pipeline LLC have signed an agreement with funds managed by Blackstone Energy Partners and Blackstone Capital Partners whereby Blackstone will contribute approximately $1.57 billion in cash in exchange for a 49.9% interest in HoldCo.
HoldCo owns a 65% interest in Rover Pipeline LLC. HoldCo and Rover Pipeline LLC are constructing the Rover Pipeline and will be the operator of the pipeline once in service.
Upon completion, the Rover Pipeline will be an approximately 700 mile pipeline designed to transport 3.25 billion cubic feet of natural gas per day from the Marcellus and Utica Shale production areas to markets across the United States as well as into Union Gas Dawn Hub in Ontario, Canada for redistribution back into the United States or into the Canadian market.
ETP plans to use the proceeds to pay down debt and help fund its current growth projects, thereby greatly reducing its equity issuances. The transaction is expected to close in the fourth quarter of 2017, subject to customary closing conditions.
Upon closing, HoldCo will be owned 50.1% by Energy Transfer and 49.9% by Blackstone.
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