NJR Midstream has agreed to acquire a natural gas storage facility in southeastern Mississippi for $367.5 million from Macquarie Infrastructure Partners.
NJR Midstream, a subsidiary of the energy services company New Jersey Resources (NJR), said the acquisition of Leaf River Energy Center LLC would expand its reach along the Gulf Coast.
“By leveraging our market expertise, NJR Midstream is well positioned with Leaf River to be a leading Gulf Coast service provider in one of the most significant and growing energy demand centers in the United States,” said NJR COO Steve Westhoven.
Through its subsidiaries, NJR offers natural gas and alternative energy services including transportation, distribution, asset management and home services. NJR Midstream serves local distributors, producers, electric generators and wholesale marketers primarily in the Northeast, where the company has interests in pipelines and the 12 Bcf Steckman Ridge storage facility near producing fields in the Marcellus Shale of Pennsylvania.
The Leaf River facility has working storage capacity of 32.2 million Dth and is one of the newest facilities in North America, according to NJR. Its three salt dome caverns came online between 2011 and 2014.
The facility is connected to six interstate pipelines and has the ability to be expanded by 13.1 million Dth, NJR said. The acquisition is expected to close by the end of the year and would boost the company’s interests in storage capacity to more than 44 million Dth.