EPCOR Sells Texas Gas Utility to SiEnergy

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EPCOR Sells Texas Gas Utility to SiEnergy

EPCOR USA Inc., part of EPCOR Utilities Inc. (EPCOR), has signed a deal to divest its natural gas utility in Texas to SiEnergy Operating, a subsidiary of Northwest Natural Holding Co., for $60 million. Hughes Gas Resources Inc., or EPCOR Texas Gas, has about 6,900 metered connections and 353 miles of pipeline serving 12 communities […]

Hughes Gas Resources Inc., or EPCOR Texas Gas, has about 6,900 metered connections and 353 miles of pipeline serving 12 communities northeast of Houston.

“EPCOR Texas Gas, which has owned and operated the assets since 2017, is expected to have a rate base of approximately $46 million at the end of 2025”, a joint statement said.

The parties expect to close the transaction this quarter.

“With a similar business model as SiEnergy, Hughes has grown organically by providing infrastructure to residential and commercial developments in high-growth areas surrounding Houston”, commented Northwest Natural chief executive Justin Palfreyman. “EPCOR Texas Gas is a great fit for us as we continue to expand and diversify our overall utility portfolio in Texas”.

EPCOR Utilities president John Elford said the sale is part of the company’s drive to focus on water opportunities in the state.

“Our customers in Texas will benefit from SiEnergy’s substantial footprint in natural gas utilities while EPCOR continues to focus on growing its water business in the United States”, said Joe Gysel, EPCOR senior vice president for North American commercial services.

Besides SiEnergy, Northwest Natural also owns Northwest Natural Gas Co., which provides natural gas services to around 2 million people in over 140 communities through 800,000 meters in Oregon and Southwest Washington. Another Northwest Natural subsidiary, NW Natural Renewables Holdings, is investing in the production of low-carbon renewable natural gas from food, agricultural and forestry waste, landfills and wastewater. Meanwhile NW Natural Water Co. delivers water and wastewater utility services in Arizona, Idaho, Oregon, Texas and Washington.

EPCOR USA provides water, wastewater, wholesale water and natural gas services to approximately 1 million people across 46 communities and 18 counties in Arizona, New Mexico and Texas. It delivers 165.4 billion gallons of water yearly and, since launching into the market in 2012, has returned more than 26 billion gallons of clean water to the natural water cycle, according to the company.

EPCOR, the parent, operates electrical, natural gas and water transmission and distribution networks, water and wastewater treatment facilities, and sanitary and stormwater systems in Canada and the United States.

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