Talen Energy completes $155M sale of pipeline

Allentown’s Talen Energy, which spun off from PPL Energy Supply in 2015, has completed the sale of its Interstate Energy Co. LLC pipeline to Adelphia Gateway LLC, a subsidiary of New Jersey Resources Corp.

Talen said it received about $155 million, which was in addition to the $10 million it received when it announced the transaction in October 2017. The money is expected to be used for debt reduction.

“The sale of IEC marks the last in a series of planned sales of non-core assets that were announced shortly following Talen Energy’s take-private transaction in December, 2016. These sales allowed the company to monetize underutilized assets to generate incremental cash flow, and drive greater efficiencies,” said Ralph Alexander, chairman and CEO of Talen Energy.

The IEC pipeline is an 84-mile pipeline between Marcus Hook and Martins Creek in Pennsylvania.

As part of the agreement, Talen Energy subsidiaries signed contracts with Adelphia ensuring that the northern portion of the pipeline will continue to supply natural gas to Talen Energy’s Martins Creek and Lower Mount Bethel generating stations.

The southern 50-mile portion of the pipeline will be repurposed by Adelphia to send natural gas to the greater Philadelphia region.