ArcLight Capital Partners’ affiliate Enstor has acquired the East Cheyenne natural gas storage facility located in Logan County, Colorado for an undisclosed price.
Image: Enstor acquires East Cheyenne natural gas storage facility in Colorado. Photo: courtesy of Carlo San/Freeimages.com
According to Enstor, the 12Bcf capacity natural gas storage facility will be integrated to its existing natural gas storage platform, which was acquired by ArcLight last year through its subsidiary Amphora Gas Storage USA from Avangrid Renewables.
The East Cheyenne facility is interconnected to the Trailblazer pipeline. Developed by Midstream Energy, the gas storage facility, which is located about 37km north of Sterling, began operations in 2014.
The gas storage facility serves as a source for seasonal, daily and intra-day load management on interstate pipelines catering to markets in the Front Range, West, and Midwest regions.
Enstor CEO Paul Bieniawski said: “East Cheyenne strategically expands Enstor’s operations into the Rockies, Midwest, and West gas markets.”
Earlier this month, the ArcLight affiliate agreed to acquire Sempra Energy’s non-utility natural gas storage facilities in the US for $332m in an all-cash deal.
The gas storage assets involved in the transaction are the Mississippi Hub and the Bay Gas storage facilities, located in Mississippi and Alabama, respectively.
Upon completion of the deal, the natural gas storage facilities will be integrated into the Enstor natural gas storage platform following the completion of the deal.
ArcLight managing partner and founder Dan Revers said: “The combination of East Cheyenne, the pending acquisition of Sempra’s gas storage facilities, and our existing Enstor platform will create the largest independent natural gas storage operator in the United States.”
Following the completion of the Sempra deal, Enstor will own and operate underground natural gas storage facilities in the Gulf Coast, Southwest, and Rockies regions with total working gas storage capacity of over 120 Bcf.
The ArcLight affiliate also holds development rights to an under construction hydrocarbon storage asset in the Permian basin and another undeveloped asset located near Mont Belvieu, Texas.
Earlier this month, ArcLight Energy Partners Fund issued a revised offer of $4.50 per share to take full ownership in American Midstream Partners, whose offshore and onshore assets are located in the Permian, East Texas, Eagle Ford, Bakken and Gulf Coast regions.