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Southern Star celebrates 120 years of service
This year, Southern Star Central Gas Pipeline celebrates 120 years of service to our customers and communities. Here are some highlights you may not have known about Southern Star’s long history:
- Much of our operating area originated in Indian Territory (Oklahoma) with inception traced to the 1896 Osage Tribal Council, where a 10-year, 1,500,000-acre oil lease, the largest in U.S. history was signed. At the time natural gas was only considered a by-product of oil production. Indian Territory Illuminating Oil Company (1896 – 1904) formed.
- In 1904, the Snyder Purchase and others brought the business under control of Henry L. Doherty who acquired 170 companies to form the Empire Companies.
- Through a reorganization in 1926, Empire became Cities Service Gas Company and expanded via LDC purchases, mergers and connections. They were the first to use old production fields as storage fields.
- Antitrust regulations implemented by the federal government in the middle of the 1900s required that the companies in the various industries of oil, gas, and electricity be separated. The connectivity of the present-day systems of Southern Star and some of our customers can be traced back to the time when these systems were run by one company.
- Cities Services was acquired by Northwest Pipeline Corp. in 1982 and renamed the company Northwest Central Pipeline Corp.
- Northwest was combined with us and sold to The Williams Companies, and we were renamed Williams Natural Gas in 1987 and then became Williams Gas Pipeline Central in 1998.
- In 2000, Williams Central (operations) headquartered in Tulsa, OK was combined with Texas Gas Transmission Corporation headquartered in Owensboro, KY. The administrative work for Williams was absorbed by the Texas Gas employees with the help of approximately 35 employees who relocated from the Tulsa offices to Owensboro.
- The Williams Companies sold Williams Central to AIG HighStar in 2002 which set up Southern Star Central Corp. as a holding company for Southern Star.
- At the outset of the AIG HighStar ownership, AIG brought in a Southern Union executive team (of 4 officers) who were to run the business on AIG’s behalf.
- AIG HighStar did not purchase any pipeline east of the Mississippi in their deal, but the likelihood of enormous talent loss in Owensboro from a major move west was of great concern, thus leaving headquarters at its present-day location.
- HighStar sold us to GE Energy Financial Services (60%) and Caisse de Dépôt et Placement du Québec, CDPQ (40%) in 2005.
- CDPQ sold its 40% share to Morgan Stanley Infrastructure Partners, MSIP in 2010.GE sold its 60% share to MSIP which then became 100% owner in September 2012.
- MSIP then sold back to GE Energy Financial Services and CDPQ which shared 50/50 ownership starting June 12, 2015.
- In 2018, GE sold its 50% share to CDPQ.
- On February 15, 2019, we announced the capital raise with Ullico Infrastructure Fund LP who became a minority partner while CDPQ maintained majority ownership.
“As we celebrate Southern Star’s 120th anniversary, it’s the work ethic, innovation and dedication of our people that truly encapsulates our story,” say Shawn Patterson, President & CEO. “From the early pioneers to today’s trailblazers, each member has been vital. I’m very excited to be a part of this celebration and look forward to the amazing accomplishments we’ll make during our time together at Southern Star.”
Jim Neukam, Market Research Strategist in Owensboro and Southern Star team member since 1980, has seen more changes with the company than anyone else.
“My career has allowed me to witness several transitions in the energy industry,” says Jim. “The transition from bundled gas supply by pipelines to a transportation and storage only business model being the most prominent. Southern Star took the changes in stride and became an efficient and reliable gas transporter with flexible and premier customer service. As we look to the future with opportunities and risks, our past legacy and adaptability has positioned us for the energy journey ahead. With a strong proactive and empowered culture at our foundation, embracing safety and innovation as our guiding forces, we can prosper in the face of uncertainty regarding traditional energy sources. The demand for energy is accelerating, an exciting time, and our achievements in the past and current will serve us well in a sustainable future as the premier energy provider in our markets. My favorite slogan is, ‘Build that Pipeline!’”
Thank you to all the customers, team members and friends who have supported Southern Star throughout our history to help make us the company we are today!