According to Buckeye Partners, an additional consideration of $12 million will be due to ArcLight upon receipt of approval from the California Public Utilities Commission for a storage reservoir expansion project associated with the acquired assets, known as Kirby Hills Phase II.
Lodi Gas Storage (LGS) owns and operates a storage facility located near Lodi, California, and a facility known as Kirby Hills located approximately 45 miles west of the Lodi facility. The combined LGS facilities provide approximately 22 billion cubic feet (bcf) of working gas capacity and are connected to Pacific Gas and Electric’s intrastate gas pipelines that serve natural gas demand in the San Francisco and Sacramento areas.
The Kirby Hills Phase II expansion project is expected to provide an approximate incremental 12bcf of working gas capacity. The expansion project is expected to be in service by the end of 2008.
