(P&GJ) — Duke Energy has agreed to sell its Tennessee natural gas distribution business, Piedmont Natural Gas, to Spire Inc. for $2.48 billion in cash. The deal includes nearly 3,800 miles of distribution and transmission pipelines and a liquefied natural gas facility serving about 205,000 customers in the Greater Nashville area.

The transaction is expected to close in the first quarter of 2026, pending regulatory approval from the Tennessee Public Utility Commission and other customary conditions.

Duke Energy said about $800 million of the proceeds will be used to pay down debt at Piedmont Natural Gas, with the remaining $1.5 billion going toward its $83 billion, five-year capital plan focused on grid modernization and energy transition initiatives.

“The transaction allows us to efficiently fund accelerating investment opportunities driven by record customer growth and a deepening economic development pipeline,” said Harry Sideris, Duke Energy president and chief executive officer. “We’re confident Spire will support the continued growth and success of the Tennessee natural gas business and serve as an incredible operator for the benefit of employees, customers and communities.”

Spire said the acquisition will expand its customer base to nearly two million homes and businesses across its service territories, which currently include Missouri, Alabama and Mississippi.

“This acquisition is a natural fit for Spire, allowing us to expand our core utility business and increase our utility customer base to nearly two million homes and businesses,” said Scott Doyle, president and chief executive officer of Spire. “We look forward to serving customers in the Nashville area and safely delivering the energy they need.”