Spectra Energy to Acquire Big Sandy Pipeline for $390m

Spectra Energy Partners has entered into a definitive agreement with EQT Corporation to acquire all of the ownership interests of the Big Sandy Pipeline for $390m in cash.

The 70 miles-long Big Sandy pipeline has a capacity of 171 million cubic feet per day.

The pipeline interconnects with the Tennessee gas pipeline system and links Huron Shale and Appalachian Basin natural gas supplies to the Mid-Atlantic and North-East markets.

EQT will be the main shipper on the pipeline, with over 80% of the pipeline’s capacity under firm 16-year transportation agreements.

Spectra Energy expects to close the transaction in the third quarter of 2011, with financing from debt and equity.