Cardinal Gas Storage Partners LLC has acquired two natural gas storage development projects from a natural gas pipeline subsidiary of CenterPoint Energy Inc. The projects are located in
Cardinal Gas Storage Partners LLC (Cardinal) announced today that it has acquired two natural gas storage development projects from CenterPoint Energy Gas Transmission Company (CEGT) an indirect, wholly-owned interstate natural gas pipeline subsidiary of CenterPoint Energy, Inc. (NYSE: CNP). The projects, located near the Perryville Hub(SM), in north
The salt dome storage development project, Perryville Gas Storage(SM), is expected to consist of up to 22.5 billion cubic feet (Bcf) of high-deliverability working gas storage capacity with multiple interconnects, including CEGT's Perryville Hub(SM) header system near Delhi, Louisiana. Cardinal expects commencement of operations in 2012 and has recently announced that a non-binding open season will begin on June 23, 2008.
The depleted reservoir storage development project, Cadeville Gas Storage, is expected to consist of up to 16.5 Bcf of working gas capacity with three major interconnects and potential for up to four turn capability. Cardinal expects commencement of operations in 2011.
Cardinal President and CEO, Jeff Ballew said, “The Perryville area is an important natural gas liquidity point, but it lacks one key component — storage. With the recent shale gas discoveries west of this location, including the recently announced Haynesville Shale, and the new pipelines bringing this gas to the Northeast, Midwest, Mid Atlantic and Florida markets, Perryville will become even more important. We look forward to developing these complementary projects. The addition of both reservoir and salt storage with multiple interconnects at the Perryville Hub(SM) will bring enhanced reliability and value to our customers.”
“We're pleased to be entering into this important and strategic transaction with a proven storage developer and we look forward to the expeditious development of these key assets,” said Cy Zebot, CEGT Senior Vice President and Chief Commercial Officer. “As we move forward with our plans to further develop our Perryville Hub(SM), having storage available is a key component to the overall strategy of becoming the premier natural gas market center in the
About Cardinal Gas Storage Partners LLC
Cardinal is a joint venture between Energy Capital Partners (“ECP”) and Martin Resource Management Corporation (“MRMC”) that is focused on the development, construction, operation and management of natural gas storage facilities throughout
About Energy Capital Partners
ECP is a private equity firm dedicated to investing in the power generation, midstream gas, renewable and electric transmission sectors of
About Martin Resource Management Corporation
MRMC is a private company based in
About CenterPoint Energy
CenterPoint Energy, Inc., headquartered in