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Morgan Stanley Infra to sell 5,800 miles of pipeline

Staff writer |
Morgan Stanley Infrastructure has agreed to sell US pipeline operator Southern Star Central to a consortium consisting of affiliates of GE Energy Financial Services and Caisse de dépôt et placement du Quebec.

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The terms of the transaction were not disclosed.

Southern Star, headquartered in Owensboro, Kentucky, is a FERC-regulated interstate natural gas transmission and storage system, consisting of over 5,800 miles of pipeline and 47 billion cubic feet of working gas storage capacity.

The company has facilities and employees in eight states. The system serves utility, municipal, commercial, industrial and power generation customers in the U.S. Midwest with natural gas sourced in large and growing production fields in the U.S. Midcontinent and Rockies regions.

MSI acquired its 100 percent interest in Southern Star through two separate negotiated transactions.

"The successful acquisition and sale of Southern Star together demonstrate Morgan Stanley Infrastructure’s strong capabilities in proprietary deal sourcing and operationally focused value creation," said Markus Hottenrott, chief investment officer of MSI.

"The team’s hands-on approach played a significant role in achieving a highly positive outcome."

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