Washington Gas part of new $1B pipeline

WASHINGTON – Washington Gas parent WGL Holdings will be part owner in a new natural gas pipeline stretching from central Pennsylvania to the Washington area.

WGL Holdings subsidiary Capitol Energy Ventures Corp. will partner with Inergy Midstream LP and UGI Energy Services Inc. to jointly develop and market the new interstate pipeline to be called the Commonwealth Pipeline.

The 200-mile pipeline will cost $1 billion to build and will be put into service in 2015, the companies said. All three companies will own equal equity interest in the company formed to own the pipeline.

The new pipeline will extend from the southern terminus of Inergy Midstream’s existing MARC I pipeline in Lycoming County, Pa., to Philadelphia, and the Baltimore and Washington areas.

The companies said it will provide a more cost-effective transportation path compared with existing pipeline networks in the region and will connect the cities it serves with natural gas produced in Pennsylvania.

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