Duke Energy Gas Transmission has completed its acquisition of natural gas storage and pipeline assets in southwest Virginia and the outstanding 50% interest in Saltville Gas Storage from AGL Resources for $62 million.
Through buying the 50% share of the Saltville Gas Storage business, Duke Energy Gas Transmission (DEGT) has taken full ownership in the limited liability company.
This acquisition of the remaining interest in Saltville Storage complements our existing East Tennessee Natural Gas (ETNG) system, providing us with opportunities to expand Saltville Storage and assist our customers in optimizing their transportation positions, said Martha Wyrsch, president and CEO, DEGT.
Saltville Storage, which began commercial operation in summer 2003, currently has a working gas capacity of about two billion cubic feet (Bcf). In addition to Saltville, other hard assets involved in the transaction include a nearby previously developed salt cavern and related facilities with a working gas capacity of about 1 Bcf, a 77-mile-long, 8-inch- diameter natural gas pipeline known as the P-25 line and the Early Grove storage field.
The P-25 pipeline stretches from Saltville to Radford, Virginia, running parallel to DEGT’s ETNG pipeline system. The Early Grove facility, site of the first natural gas discovery in Virginia, is a depleted underground natural gas reservoir and related assets with a working gas capacity of about 1.5 Bcf.