Pine Run Gathering acquires Superior Midstream Appalachian pipeline gathering systems

Pine Run Gathering LLC completed a deal to acquire Superior Midstream Appalachian LLC for $120 million. 

Pine Run Gathering is a joint venture owned by a subsidiary of Stonehenge Energy Resources III LLC, a portfolio company of Energy Spectrum Partners VIII LP, and UGI Corp.’s wholly owned subsidiary, UGI Energy Services LLC (UGIES).

Superior Appalachian owns and operates three gathering systems in Pennsylvania, namely Pittsburgh Mills, Snow Shoe, and Brookfield.

The Pittsburgh Mills gathering system lies in Allegheny and Butler Counties. It includes compression, dehydration, and has delivery capacity through interconnects with Dominion TL-469 and UGIES' Big Pine system. 

The Snowshoe gathering system lies in Centre County, with a compressor site, dehydration, an interconnect to Dominion PL-1, and taps on TETCO.

The Brookfield gathering system is sited in Tioga County, with delivery to National Fuels Z20S through a third party.

All three have long-term acreage dedications and total combined daily flow of about 190 MMcfd. 

The deal was financed by debt at Pine Run Gathering, in which Stonehenge and UGIES hold a 51% and 49% ownership interest, respectively.