Dominion Midstream Partners LP will acquire the ownership interests of Iroquois Gas Transmission System LP from affiliates of National Grid Plc and New Jersey Resources Corp. through agreements, the company said Aug. 17.

About 8.6 million common units of Dominion Midstream will be issued in exchange for the interests. The units’ agreed-upon value is about $286.5 million. National Grid and New Jersey Resources will contribute their combined 25.93% ownership interests to Dominion Midstream in exchange for newly issued Dominion units.

Dominion Midstream has no plans to acquire the ownership interest in Iroquois that are currently held by Dominion Gas Holdings LLC, a wholly owned subsidiary of Dominion Resources Inc., the company said.

National Grid will receive about 6.8 million units. New Jersey Resources will receive about 1.8 million units.

Certain transfer restrictions for the units were agreed on. These include a general one-year lockup period. No public market issuance of units is planned in connection with these transactions, the company said.

"This is an excellent example of what we have laid out as our core strategy since Dominion Midstream's IPO – that is, to achieve best-in-class growth through the acquisition of high-quality, stable, regulated midstream gas infrastructure, said Thomas F. Farrell II, chairman, president and CEO of Dominion Resources and Dominion Midstream GP LLC.

“Dominion knows Iroquois well, and Dominion Midstream is pleased to acquire a stake in this well-run, safety-conscious pipeline system. We also welcome National Grid and New Jersey Resources as partners in Dominion Midstream.”

The closing of both transactions is subject to clearance under the Hart-Scott-Rodino Act.

Dominion Midstream is based in Richmond, Va.

Iroquois Gas Transmission System LP is based in Shelton, Conn.