Buffalo, NY, October 22, 2025

National Fuel Gas Company (NFG) has announced a significant $2.6 billion acquisition of CenterPoint Energy’s Ohio natural gas utility. This deal adds over 277,000 customers to NFG’s service area and enhances its operational footprint in the Midwest. Local business leaders believe this acquisition will foster regional economic stability and job growth, although it awaits regulatory approvals.

Buffalo-Based National Fuel Gas Announces $2.6 Billion Acquisition of Ohio Utility

BUFFALO, NY – In a significant move for the energy sector, National Fuel Gas Company (NFG), headquartered in Buffalo, has agreed to acquire the Ohio natural gas utility business from CenterPoint Energy for $2.6 billion. This deal marks a major expansion for NFG into the Midwest, solidifying its position as a key player in regional energy distribution.

The acquisition will bring NFG’s operations to serve an additional over 277,000 customers in Ohio, enhancing its overall service footprint. Company executives have pointed to expected synergies that will drive improvements in operational efficiency and service reliability for consumers across the expanded network. This strategic purchase builds on NFG’s existing strengths in natural gas delivery, particularly in the Northeast, by integrating established infrastructure in a growing market.

Local business leaders in Buffalo see this development as a boost to regional economic stability in the energy industry. The deal is expected to create new opportunities for investment and job growth in the area, as NFG leverages the acquisition to strengthen its long-term presence. However, the transaction remains pending regulatory approvals from relevant state and federal authorities, which could influence the final timeline for completion.

Details of the Acquisition

Under the terms of the agreement, NFG will take over CenterPoint’s natural gas operations in Ohio, which include extensive pipeline networks and distribution systems. This move allows NFG to diversify its portfolio beyond its traditional service areas in New York and Pennsylvania. The $2.6 billion price tag reflects the value of the assets involved, including customer base, infrastructure, and regulatory assets.

NFG, a diversified energy company with roots in Buffalo since its founding over a century ago, focuses on the exploration, production, and distribution of natural gas. The Ohio utility, part of CenterPoint’s broader portfolio, operates in multiple counties and has been a stable provider for residential, commercial, and industrial users. Integrating these operations is anticipated to yield cost savings through shared resources and technology upgrades.

Impact on Customers and Operations

For the more than 277,000 customers in Ohio, the transition promises enhanced reliability without immediate disruptions. NFG plans to maintain service levels while introducing efficiencies that could lower long-term costs. This includes modernizing aging infrastructure and expanding access to cleaner energy options, aligning with broader industry trends toward sustainability.

In Buffalo, where NFG employs thousands and contributes significantly to the local economy, the acquisition reinforces the company’s role as an economic anchor. Business community members note that such expansions help stabilize energy supplies amid fluctuating market conditions, benefiting not just immediate stakeholders but the wider region.

Broader Context and Regulatory Path

The energy sector has seen increased consolidation in recent years as companies seek to scale operations in response to demand for reliable, affordable natural gas. NFG’s deal follows a pattern of strategic acquisitions aimed at geographic expansion and operational resilience. CenterPoint, based in Houston, is streamlining its focus by divesting non-core assets, allowing it to concentrate on its primary electricity and gas operations in other states.

Regulatory approval will involve reviews by bodies such as the Ohio Public Utilities Commission and potentially the Federal Energy Regulatory Commission. These processes ensure the deal serves public interest, maintains competitive markets, and protects consumer rates. Past similar transactions have typically taken several months to clear, depending on the complexity of the filings.

Looking ahead, NFG’s growth into Ohio positions it to better navigate challenges like supply chain issues and environmental regulations. For Buffalo’s business landscape, this underscores the city’s ongoing relevance in national energy dynamics, fostering a sense of optimism for future developments.

This acquisition highlights the evolving nature of the utility industry, where scale and efficiency are paramount. As NFG integrates these new assets, it will play a pivotal role in ensuring stable energy delivery for communities on both sides of the Midwest-Northeast divide.

FAQ

What is the value of the acquisition announced by National Fuel Gas?

The acquisition is valued at $2.6 billion.

Where is National Fuel Gas headquartered?

National Fuel Gas is headquartered in Buffalo, NY.

What business is National Fuel Gas acquiring?

National Fuel Gas is acquiring CenterPoint Energy’s Ohio natural gas utility business.

How many customers will this acquisition add to NFG’s service area?

The acquisition will expand NFG’s service to over 277,000 customers in Ohio.

What benefits do executives highlight from this deal?

Executives highlight synergies that will improve efficiency and reliability.

How does Buffalo’s business community view this acquisition?

Buffalo’s business community views this as a positive step for regional energy stability.

What is the current status of the acquisition?

The acquisition awaits regulatory approval.

Key Features of the Acquisition

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Author: HERE BUFFALO