Natural Gas Pipeline Company of America ("NGPL"), United States
– One of the largest natural gas transmission pipeline and storage systems in the U.S.
Interest: 26%
Description
Natural Gas Pipeline Company of America (“NGPL”) extends over 15,600 km and delivers approximately 2.2Tcf of natural gas to end users per annum, making it one of the largest natural gas transmission pipeline and storage systems in the U.S. NGPL’s system provides peak day deliverability of up to 5.8 Bcf per day and in addition, has eight storage facilities with a combined working gas storage capacity of 275 Bcf.
NGPL is the largest provider of gas transmission and storage services to the Chicago market and has high interconnectivity with production basins, including many of the high potential areas in the emerging shale gas basin, and other pipelines providing a means for producers to access national markets.
Regulatory Environment
NGPL is regulated by the Federal Energy Regulatory Commission (“FERC”). FERC provides a regulated framework for shippers and transmission pipeline owners to reach commercial agreement without direct intervention under a maximum rate regime, and there is no periodic rate case obligation.
Strong Customer Base
Top 10 customers make up over 60% of the transmission and storage revenues. Largest customers include a mix of investment grade utilities and major oil companies.
Stable Cash Flows
Average contract terms of 3.4 years and 4.4 years for transport and storage customers, respectively, with a long history of contract rollovers.
Irreplaceable Strategic Asset
- Serves approximately 61% of the Chicago and northern Indiana market.
- Strong connectivity with inter-state and intra-state pipelines as well as local distribution companies.
Growth Opportunities
Geographic proximity to emerging shale gas basin provides opportunities to grow pipeline.