On 12 July 2011, Gateway and American Midstream submitted a joint petition to the New York Public Service Commission (PSC) to effect the asset transfer.
The transaction is expected to close by 30 September 2011, subject to PSC approval and if certain other conditions are met.
The pipeline transports natural gas into a facility owned by Owens Corning in Delmar.
In connection with the transaction, Gateway will sign a new long-term agreement with Owens Corning to transport natural gas at a fixed monthly rate.
Gateway Energy president and CEO Frederick Pevow said the acquisition is consistent with the company’s strategy to increase its ownership of pipelines which serve end users of natural gas pursuant to long-term, fixed price contracts.
Gateway Energy owns and operates natural gas distribution, transportation and gathering systems onshore in the continental US and in federal and state waters of the Gulf of Mexico.
