BROOKLYN, N.Y., Dec. 18, 2003 — KeySpan Corp. has announced its subsidiary, KeySpan Energy Development Corp. (KEDC), has completed the sale of its 24.5% interest in Phoenix Natural Gas to East Surrey Holdings for $96 million.
This follows last month’s announcement of a signed Sale and Purchase Agreement. Phoenix Natural Gas is a gas distribution company based in Belfast, Northern Ireland.
“We are pleased to announce the completion of the sale,” said Robert B. Catell, Chairman and CEO of KeySpan. “This transaction is consistent with our strategy of monetizing our non-core assets and delivering on our promises to further strengthen our balance sheet and focus on growing our core businesses.”
East Surrey Holdings, which had owned 24.5% of Phoenix Natural Gas, has also purchased the 51% interest of the other shareholder, BG Group, a global energy company based in the United Kingdom. The sale of KeySpan’s interest and BG Group’s interest occurred simultaneously, making East Surrey Holdings the 100% owner of Phoenix Natural Gas.
KeySpan originally purchased its interest in Phoenix Natural Gas in February 1997. Since then, the business has expanded from a single customer to more than 64,000.
A member of the Standard & Poor’s 500 Index, KeySpan Corporation (NYSE: KSE) is the largest distributor of natural gas in the Northeast with 2.5 million customers, operating regulated natural gas utilities in New York, Massachusetts and New Hampshire under the KeySpan Energy Delivery service company. This customer focused business is complemented by the Energy Services business which offers a portfolio of energy-related products, services and solutions to homes and businesses under the KeySpan Home Energy Services and KeySpan Business Solutions companies.
KeySpan is also the largest investor owned electric generator in New York State. We own approximately 6,400 MW of generating capacity, which provides power to 1.1 million LIPA customers on Long Island and supplies 25% of New York City’s capacity needs. In addition to these assets, KeySpan has strategic investments in natural gas exploration, production, pipeline transportation, distribution and storage, and Canadian gas processing. KeySpan has headquarters in Brooklyn, Boston and Long Island and 12,000 employees. For more detailed financial and strategic information, please visit our Investor Relations web page at http://investor.keyspanenergy.com.