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
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
Joe Fisher, Houston
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