Kansas-based Inergy has acquired the Tres Palacios natural gas storage facility located in Matagorda County, Texas, for approximately $725m.
Tres Palacios is a salt dome storage facility with approximately 38.4bcf of working gas capacity including 27.1bcf of current working gas capacity and 11.4bcf of incremental working gas capacity scheduled to be placed in service in the fourth quarter of 2010.
The facility is expandable by an additional 9.5bcf of working gas capacity, which is expected to be in service by 2014.
Tres Palacios is located approximately 100 miles southwest of Houston, and is currently connected to a total of ten intrastate and interstate pipelines offering connectivity to multiple demand markets.
Inergy completed the long-term financing of the Tres Palacios acquisition in September with the issuance of over $400m of its common units and $600m in senior unsecured notes due 2018.