Inergy LP has completed is $725 million acquisition of the Tres Palacios high-deliverability, salt dome gas storage facility in Matagorda County, TX, from NGS Energy LP.
Tres Palacios offers 38.4 Bcf of working capacity, including 27.1 Bcf of current capacity (Caverns 1 and 2) and 11.4 Bcf of incremental capacity scheduled to be placed in service in 4Q2010 (Cavern 3). Tres Palacios received approval in late August to place the third cavern in service (see Daily GPI, Aug. 31).
Inergy said the facility is expandable by an additional 9.5 Bcf of working capacity, which the company expects to place in service by or before 2014 (Cavern 4). Located approximately 100 miles southwest of Houston, Tres Palacios is connected to a total of ten intrastate and interstate pipelines offering connectivity to multiple demand markets including the Houston and San Antonio metropolitan areas and the broader Texas markets as well as markets in the Northeast, Midwest, Southeast, Florida, and Mid-Atlantic United States and Mexico.
With the deal first announced early last month (see Daily GPI, Sept. 8), Inergy later in the month completed the long-term financing of the acquisition with the issuance of over $400 million of Inergy common units and $600 million in senior unsecured notes due in 2018.
Inergy also announced that Bruce Page has joined the Inergy Midstream management team as the director of commercial operations-south. Page is a 28-year industry veteran with experience in both the Texas intrastate and national transportation and storage infrastructure markets.
Assisting Page will be Jeff Reavis, manager of hub services. Reavis has 25 years of experience in gas storage, marketing, gas aggregation, and storage facility optimization and will focus on hub service opportunities on behalf of the customers of Tres Palacios.
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