WGL Midstream

Natural Gas Storage and Transportation

WGL Midstream specializes in the investment, management, development and optimization of natural gas storage and transportation midstream infrastructure projects.

About Us

WGL Midstream (WGLM), formerly known as Capitol Energy Ventures, engages in developing, acquiring, investing in, managing and optimizing natural gas storage and transportation assets.

Our Mission

WGL Midstream utilizes its assets and expertise to bring structured, customized solutions to our customers, creating value for all parties. These solutions include natural gas infrastructure development, asset optimization and commodity management services.

Our Customers

WGL Midstream's customers and counterparties include producers, utilities, LNG exporters, local distribution companies, power generators, wholesale energy suppliers, pipelines and storage facilities.

Our Objectives

WGL Midstream takes natural gas molecules from where they are to where they need to be. By creating long-term relationships with our business partners, WGL Midstream seeks to safely, efficiently and profitably grow its portfolio of natural gas storage and transportation assets.

Our Projects

Constitution Pipeline

In May 2013, WGL Midstream announced its equity investment in Constitution Pipeline Company, LLC. The fully subscribed natural gas pipeline project will transport natural gas from the Marcellus region in northern Pennsylvania to major northeastern markets. WGL Midstream joins Williams Partners L.P., Cabot Oil and Gas Corporation and Piedmont Natural Gas in the project, and will invest an estimated $79 million.

“Our involvement in the Constitution Pipeline is a demonstration of our continued execution of our strategy to grow our portfolio of infrastructure assets. The project also adds incremental earnings growth from a regulated investment,” said WGL Holdings, Inc., Chairman and CEO Terry D. McCallister. “We are proud to join such highly regarded companies like Cabot Oil and Gas, Piedmont Natural Gas, and Williams Partners, as we work together to realize the growing potential of the abundant natural gas supplies from the Marcellus Shale formation.”

The project is scheduled to transport at least 650,000 dekatherms of natural gas per day or the equivalent of providing 3 million homes daily with natural gas. An affiliate of Williams Partners will construct, operate and maintain the new 30-inch, 121-mile long transmission pipeline.

WGL Holdings, through its subsidiary WGL Midstream, will hold a 10 percent share in the pipeline venture. Williams Partners will hold a 41 percent ownership share, Cabot Oil and Gas a 25 percent share, Piedmont Natural Gas, a 24 percent share through its wholly owned subsidiary.

Fully contracted with long-term commitments from established natural gas producers currently operating in Pennsylvania, the pipeline will originate from the Marcellus production areas in Susquehanna County, Pa., and interconnect with the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, N.Y.

WGL Holdings is a provider of a broad range of energy solutions from clean, efficient natural gas and renewables to energy efficiency offerings. This portfolio of solutions assists customers across 21 states to find the answers to their energy questions. The addition of this asset demonstrates our continued commitment to identifying high-value opportunities that serve customers and shareholders.

Constitution Pipeline LLC has extended the range for the pipeline’s target in-service date to the second half of 2016 as a result of a longer than expected regulatory and permitting process.

Central Penn Line Pipeline

In February 2014, WGL Midstream became the lead investor in an agreement with three other parties to create a company that will jointly develop and own, together with Transcontinental Gas Pipe Line Company, LLC (Transco), the Central Penn Line, a 177-mile pipeline originating in Susquehanna County, Pennsylvania and extending to Lancaster County, Pennsylvania. The Central Penn Line is the greenfield pipeline segment of Transco's recently announced Atlantic Sunrise project which currently has a projected in-service date in the second half of 2017.

As part of the agreement, WGL Midstream will invest approximately $410 million, resulting in a majority ownership interest in the company that will co-own the Central Penn Line with Transco. This transaction is WGL Midstream's second significant investment in natural gas infrastructure in less than nine months, and it will provide WGL Midstream with sustainable, regulated earnings. Also, this transaction reaffirms WGL's strategy to grow a portfolio of infrastructure investments in clean and efficient energy assets across the United States.

The Central Penn Line, as part of Atlantic Sunrise, is a natural gas pipeline project designed to provide new firm gas transportation capacity from various supply points in northeast Pennsylvania to a delivery point into Transco's mainline in southeast Pennsylvania. The pipeline will have the capacity to transport and deliver up to approximately 1.7 million dekatherms per day of natural gas.

The Central Penn Line will be part of a transformational project in light of the increased production of natural gas in the Marcellus region, particularly in northern Pennsylvania. The project will be instrumental in addressing the current challenge of transporting natural gas from an area with abundant supply to existing established markets.

“As the need for natural gas continues to increase, WGL is well positioned to meet future demand levels and will be able to continue to provide more businesses and residential customers with the benefits of safe and reliable natural gas,” said WGL Chairman and CEO, Terry D. McCallister. ”We have a platform that not only reinforces our regional natural gas delivery system, but also provides asset ownership.”

Cove Point LNG Export Announcement

On 12/4/14 WGL Midstream announced the execution of a gas sale and purchase, and capacity agreement with GAIL Global (USA) LNG LLC, a subsidiary of GAIL (India) Limited (“GAIL”) under which WGL Midstream has agreed to sell up to 430,000 dth/day of natural gas, for a term of approximately 20 years, commencing on the in-service date of the Cove Point LNG export facility. WGL Expects that the majority of the natural gas would be purchased by WGL Midstream through an existing arrangement with Antero Resources Corporation (“Antero”), a premier producer and the most active operator in the Marcellus and Utica Shale region.

“We look forward to WGL Midstream’s long-term relations with GGULL which capitalizes on the growing supply of abundant natural gas from the Marcellus Shale producing region. This growing supply source has been providing clean burning natural gas to the Northeast and Mid-Atlantic regions of the US and now will supply the country of India as well,” said Terry D. McCallister, Chairman, Chief Executive Officer, WGL Holdings, Inc. “This sales agreement is in line with our corporate vision that produces value for our customers, investors and communities and is another example of implementing our strategy to build a growing, long-term earnings stream consisting of efficient, customized energy solutions.”

Commenting on the development, Mr. B. C. Tripathi, Chairman and Managing Director of GAIL, said “We are delighted to partner with WGL Midstream which is a part of a group that has a rich history of over 160 years in the natural gas supply business in the Mid-Atlantic region. This agreement is another milestone towards GAIL’s efforts in the sourcing of LNG to meet the rising gas demand in the Indian market.”

Through the long-term agreement, WGL Midstream is GGULL’s sole supplier of a minimum of 340,000 dth/day and up to 430,000 dth/day of clean and abundant natural gas through a 20-year contract period. WGL Midstream engaged Vega Energy Partners, Ltd. for the negotiation and execution of this transaction, and Vega will also play an ongoing role in the implementation of the contract.

Frequently Asked Questions

What is WGL Midstream?

WGL Midstream (WGLM) began in 2010 as Capitol Energy Ventures (CEV) to establish a non-regulated business initiative that would own its own assets, separate from the regulated utility, and expand into a more national footprint. The ultimate goal was to focus on owning long-term natural gas infrastructure. This new venture leveraged our existing strengths of asset optimization, energy accounting, and risk management, and combined it with the desire to enter into asset management, and business development.

Today, WGLM leverages a successful physical natural gas transaction platform to acquire, manage and optimize natural gas storage and transportation assets. We use these assets to bring structured, customized solutions to our customers, creating value for all parties. We take natural gas molecules from where they are to where they need to be, and create value through long-term recurring earnings in the process.

When did the name change occur?

On November 7th, 2013 Capitol Energy Ventures Corp. officially changed its name to WGL Midstream, Inc. as part of the overall Corporate Branding effort which better aligns our organizational entities to provide one voice to our customers and stakeholders. The WGL Midstream name also better aligns us with our vision of being an owner of midstream assets. One Voice, One Company, One Name: Energy Answers – Ask Us.

How does WGLM operate on a day-to-day basis?

WGLM is dedicated to providing safe, reliable fuel to customers, from both its own assets and the wholesale natural gas marketplace. WGLM’s strategy is to combine its extensive marketing knowledge with its optimization expertise and techniques. WGLM makes carefully calculated risk/reward profile and investment decisions, which mitigate portfolio energy risks while deploying profitable business strategies. In the daily wholesale natural gas market, WGLM is an active participant. WGLM buys and sells natural gas on a daily basis with producers, wholesalers and end-users, offering customized energy solutions.

Where does WGLM operate?

WGLM is headquartered in WGL’s Washington, DC office, and has a commercial relationship with Vega Energy Partners Ltd. located in Houston, Texas. Below are a few main points regarding WGLM operations:

Relationship to Washington Gas Light

There is no relationship to Washington Gas Light utility other than the fact that both entities share the same ultimate parent company WGL.

Geography

From Northeastern Massachusetts all across the Midwest expanding south to Texas across more than 25 states. In short, the eastern half of the US.

Customers

Wholesale customers ranging from producers, utilities, LNG exporters, local distribution companies, power generators, wholesale energy suppliers, pipelines and storage facilities.

How can I contact WGLM?

Executive Team

Tony Nee – President

Steve Soulé – Vice President

Contracts

(202) 624-6314

Trading & Scheduling

(713) 527-0557

 

101 Constitution Avenue N.W
Washington, DC 20080
United States
www.wglholdings.com