US electricity and natural gas supplier Dynegy has agreed to sell its natural gas business to Targa Resources for $2.48 billion in cash.

Under the terms of the agreement, which has been approved by the boards of both companies, Targa Resources, a Houston-headquartered independent company affiliated with private equity investor Warburg Pincus, will pay the $2.48 billion sum to acquire Dynegy’s ownership interests in Dynegy Midstream Services, Limited Partnership.

Dynegy Midstream Services holds Dynegy’s natural gas gathering and processing assets, as well as its natural gas liquids fractionation, terminalling, storage, transportation, distribution and marketing assets.

The sale comes just months after Dynegy revealed plans to sell around half of its businesses to fend off bankruptcy and follows on from the sale last year of its Illinois Power utility to St. Louis-based Ameren Corp. for $500 million in cash and $1.8 billion in assumed debt.

Dynegy expects to realize a return of cash collateral of $125 million and eliminate its responsibility for approximately $75 million in letters of credit for the divested assets.