CorEnergy Infrastructure Trust has agreed to acquire the ownership and operations of the MoGas Pipeline System in the US for $125m.
The 263-mile pipeline originates in northeast Missouri and extends into western Illinois and central Missouri.
It supplies natural gas in and around the St. Louis region and to small municipalities across central Missouri.
Primary customers include Laclede Gas, Ameren Missouri and Omega Pipeline, which is a subsidiary of CorEnergy.
MoGas was created in 2008 by the combination of three affiliated pipeline systems, Missouri Interstate Gas, Missouri Gas Company, and Missouri Pipeline Company.
MoGas currently provides firm and interruptible natural gas transportation service with receipt points at Centerpoint Energy-Mississippi River Transmission Corporation on the east and Panhandle Eastern Pipe Line Company and Rockies Express Pipeline on the west ends of the system.
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By GlobalDataCorEnergy chief executive officer David Schulte said: "We are pleased to add an interstate pipeline to our diversified portfolio of infrastructure assets used by utilities, storage terminal operators, and natural gas producers.
"Our Board of Directors has confirmed its intent to increase the dividend from $0.130 to $0.135 for the quarter ended March 31, 2015 (or $0.54 cents per share annualized) based upon management’s expectation that the increase is sustainable."
CorEnergy Infrastructure Trust primarily owns midstream and downstream energy infrastructure assets in the US that are subject to long-term triple net participating leases.
The company’s assets include pipelines, storage tanks, transmission lines and gathering systems.
Image: CorEnergy Infrastructure Trust will acquire the ownership and operations of the MoGas Pipeline System. Photo: Courtesy of puttsk/FreeDigitalPhotos.net.
