Private equity-backed Six One Commodities Global LLC, known as 61C Global, announced plans to open a Houston office as part of its recent acquisition of Vega Energy Partners Ltd. and WGL Midstream Inc.

“This is a transformational opportunity for 61C Global,” 61C Global CEO Ben Sutton said in a statement in an April 26 company release announcing the acquisitions of Vega and WGL Midstream.

61C Global is an international natural gas, LNG and power merchant headquartered in Stamford, Conn. The company formed in August 2018 through the partnership between private, New York-based alternative asset management firm Pinnacle Asset Management LP and Sutton, who had served as head of North American gas and power at Noble Americas Gas & Power Corp.

“These acquisitions will accelerate our growth in the natural gas market, add significant earnings potential, and provide a solid platform for us to link our existing domestic and international LNG businesses,” Sutton continued in his statement.

The acquisitions follow the sale of AltaGas Ltd.’s U.S. transportation and storage business to an entity owned by 61C Global and Vega Energy Partners for total cash proceeds of approximately $275 million. The deal included a number of natural gas transportation and storage contracts, including approximately 31 Bcf of leased and managed storage capacity.

The sale, which closed April 23, did not include AltaGas’ 10% equity stake in the Mountain Valley Pipeline or the company’s 5.1% equity stake in the Mountain Valley Pipeline Southgate expansion. The assets have been a part of Calgary, Alberta-based AltaGas’ operations since AltaGas acquired the WGL family of companies—Washington Gas, WGL Energy, WGL Midstream and Hampshire Gas—in 2018.

WGL Midstream, formerly known as Capitol Energy Ventures, is a wholesale energy solutions business that invests in and optimizes natural gas pipelines and storage facilities in the Midwest and Eastern U.S. 

All of WGL Midstream’s current portfolio of projects are located in the Marcellus and Utica shale region in the Appalachian Basin, according to the company website. They consist of the Constitution and Central Penn Line pipelines in Pennsylvania plus a gas sale and purchase, and capacity agreement for the Cove Point LNG export facility in Maryland.

Despite being an indirect subsidiary of AltaGas, WGL Midstream’s assets are managed by Vega Energy Partners, a Houston-based energy merchant, the release by 61C Global on April 26 said.

According to Vega’s website, the Houston-based energy merchant manages over 80 Bcf of natural gas storage and 4 Bcf/d of transportation, all under long-term contractual arrangements with its customers.

“We are excited to establish a Houston office and presence, and we look forward to integrating and working collaboratively with the talented team at VEP (Vega Energy Partners) to further position us as a premier globally integrated energy merchant company,” Sutton said.

In a statement commenting on the transactions, Jason M. Kellman, managing partner and chief investment officer of Pinnacle, added: “These acquisitions of VEP and WGLM (WGL Midstream) are a seamless way for 61C Global to gain a significant footprint in the U.S. natural gas market. We look forward to leveraging VEP and WGLM’s assets and capabilities as we continue to expand the 61C Global business.”

Comments