December 2014, Vol. 69, No. 12
Business
NiSource To Separate Natural Gas Pipeline, Related Businesses
NiSource Inc. announced that its board of directors has approved in principle plans to separate its natural gas pipeline and related businesses into a stand-alone publicly traded company.
The transaction will result in two highly focused energy infrastructure companies: NiSource Inc., a fully regulated natural gas and electric utilities company, and Columbia Pipeline Group Inc. (CPG), a pure-play natural gas pipeline, midstream and storage company. The separation is expected to occur in mid-2015.
NiSource will remain one of the largest natural gas utility companies in the United States, serving more than 3.4 million customers in seven states under the Columbia Gas and NIPSCO brands.
CPG, which is expected to be listed on the New York Stock Exchange, will include Columbia Gas Transmission, Columbia Gulf Transmission, NiSource Midstream Services and other current NiSource natural gas pipeline, storage and midstream holdings. In total, at separation the new public company will operate more than 15,000 miles of natural gas transmission pipelines, nearly 300 billion cubic feet of underground natural gas storage capacity, and a growing portfolio of midstream and related facilities.
As part of the transition process, the NiSource board of directors plan to formally name CEOs for both publicly traded companies by the end of 2014, with executive teams to follow.
NiSource does not expect the separation to result in job reductions among its current workforce of approximately 8,800 employees. The company also does not anticipate any significant changes to the compensation or benefits offered to employees or retirees, and will honor all existing labor agreements.
NiSource will continue to be headquartered in Merrillville, IN, and CPG will be headquartered in Houston, TX. nisource.com, columbiapipelinegroup.com
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