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El Paso Completes Crystal Storage Deal

El Paso Completes Crystal Storage Deal

El Paso Energy Corp. completed its acquisition of Crystal Gas Storage Inc. of Shreveport, LA. Each holder of Crystal Gas Storage common stock received $57 per share in cash in a deal worth $224.6 million. "The Crystal assets provide the flexibility, high deliverability, and multiple pipeline interconnects necessary to meet the gas supply demands of new plants in the competitive power market," said El Paso CEO William A. Wise.

The deal was announced in October. Crystal owns and operates, through wholly owned subsidiaries, two salt dome storage facilities near Hattiesburg, MS, and holds various interests in gas properties, primarily in Arkansas and Louisiana. Combined, the caverns have 6.7 Bcf of working gas capacity. A 7 Bcf expansion is awaiting FERC certification and is fully subscribed by Southern Co. Services, which operates electric utilities in Mississippi, Alabama and Georgia.

The storage facility straddles both El Paso's Tennessee Natural Gas and Southern Natural Gas, which El Paso is in the process of acquiring. The facility also straddles Koch Gateway and Transco.

Crystal Gas Storage currently owns and operates through wholly owned subsidiaries two gas storage facilities near Hattiesburg, MS, and holds various interests in gas properties primarily in Arkansas and Louisiana.

Joe Fisher, Houston

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