Consolidated Edison Inc. and Crestwood Equity Partners LP completed the formation of a new joint venture to own and develop Crestwood's natural gas pipeline and storage business in southern New York and northern Pennsylvania, the company said June 6.

As part of the transaction, Crestwood contributed its interstate natural gas pipeline and storage business to a new entity, Stagecoach Gas Services LLC. A subsidiary of Con Edison Transmission Inc., which is a wholly owned subsidiary of Con Edison, indirectly purchased a 50% equity interest in Stagecoach Gas Services for about $945 million, which was distributed to Crestwood.

Subject to working capital and other adjustments, the parties' initial contribution has an implied market value of almost $2 billion.

Subject to New York State regulatory approval and other closing conditions, Crestwood will contribute its existing New York intrastate pipeline to Stagecoach Gas Services, while Con Edison Transmission will contribute about $30 million to Crestwood.