Daily GPI / Infrastructure / M&A / NGI All News Access / Storage

Avangrid Subsidiary Selling Natural Gas Storage Business

Avangrid Renewables Holdings Inc. (ARH) recently agreed to sell parent Avangrid Inc.'s natural gas storage business, Enstor Gas LLC, to Amphora Gas Storage USA LLC, an affiliate of ArcLight Capital Partners LLC, for an undisclosed amount.

The transaction is expected to be completed during 2Q2018.

Enstor Gas owns and operates gas storage facilities on the Gulf Coast and Southwest with a total storage capacity of 88.5 Bcf and a net working gas storage capacity of 67.5 Bcf, Avangrid said.

It was the second time in recent weeks that Avangrid has announced the sale of a natural gas business.

In late January, ARH agreed to sell natural gas trading business Enstor Energy Services LLC to Castleton Commodities International LLC subsidiary CCI U.S. Asset Holdings LLC for an undisclosed amount. The deal is expected to be completed in March.

Enstor Energy Services is a limited proprietary trading business providing structured products and hedging services.

"The sale of this business to CCI is consistent with the results of our strategic review of the Enstor gas storage businesses, including the trading business," said Avangrid CEO Jim Torgerson.

Acquisition of the gas trading business could boost the marketing fortunes of Castleton, which was No. 14 in NGI's most recent North American Marketer Rankings, having moved 2.64 Bcf/d in 3Q2017.

The purchase of Enstor Energy Services came just 14 months after Castleton agreed to pay Anadarko Petroleum Corp. $1 billion-plus for upstream and midstream properties in the Carthage producing area of East Texas. Through that deal, the global commodities firm said it would own 160,000-plus net acres in East Texas and produce more than 320 MMcfe/d net from the region.

Recent Articles by David Bradley

Comments powered by Disqus