Talen Energy of Allentown has announced the sale of its Interstate Energy Company subsidiary gas pipeline to Adelphia Gateway LLC, a subsidiary of New Jersey Resources, for around $189 million.
Talen’s IEC subsidiary owns and operates an 84-mile pipeline that interconnects the producing region of southeastern Pennsylvania to the Philadelphia gas market.
“Since December of 2016, Talen Energy’s new management team has continued to deliver on its plan to improve the company’s operational performance and divest noncore assets, while generating significant cash flow,” said Ralph Alexander, Talen’s CEO.
Talen said this sale completes the execution of the $325 million noncore asset sale program it announced this year.
As part of the agreement, Talen Energy subsidiaries will enter into contracts with Adelphia where the northern portion of the pipeline will continue to supply natural gas to Talen’s Martins Creek and Lower Mount Bethel generating stations.
The southern portion will be repurposed by Adelphia to provide customers in Philadelphia with a new source of natural gas.
The sale is expected to close in about 12 months following the receipt of all necessary permits and regulatory actions.