Looking to expand its natural gas storage assets to meet growing customer demand, Union Gas Ltd., a Spectra Energy subsidiary, said Tuesday it has acquired a 1 Bcf natural gas storage pool located near Sarnia, ON, from Midway Petroleum Co. for an undisclosed price. The deal marked Union Gas’ second storage acquisition in as many months.

Union Gas said it plans to develop the storage pool, which is expected to be in service in 2009.

“This acquisition is part of our overall plan to expand our natural gas storage assets to respond to growing customer demands for natural gas storage and balancing services,” said Steve Baker, vice president of business development at Union Gas. “Our ability to support the additional investment in natural gas storage assets is a direct result of the storage forbearance decision issued by the Ontario Energy Board last November.”

Last month Union Gas also signed an agreement in principle regarding the acquisition of a 75% interest in a 3 Bcf storage pool currently owned by Tribute Resources located in Huron County.

Union Gas is an integrated natural gas storage, transmission and distribution company, which serves approximately 1.3 million residential, commercial and industrial customers in 400 communities throughout Ontario. The company’s storage and transportation assets move natural gas from all major North American supply basins to central Canadian and northeastern U.S. markets. Through its 2,750 miles of transmission pipeline and 150 Bcf of high-deliverability storage at Dawn, the largest storage facility in Canada and one of the largest in North America, Union Gas’ storage and transportation business serves utilities and energy market participants in Ontario, Quebec and the United States.

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