Buyout shop EQT has taken a 70% stake in U.S. natural gas storage company Peregrine Midstream Partners. Terms of the deal were not released. The infusion of capital will help Peregrine to complete its Ryckman Creek project, a depleted oil and gas reservoir that is being converted into a gas storage facility, Reuters said.
(Reuters) – European private equity firm EQT said on Wednesday that it bought 70 percent of U.S. natural gas storage company Peregrine Midstream Partners, which owns a storage project in Wyoming.
EQT did not disclose the value of the deal. It said its investment will allow privately-held Peregrine to finish the Ryckman Creek project, a depleted oil and gas reservoir that is being converted into a gas storage facility.
Peregrine also has other gas storage projects in its portfolio, EQT said.
According to the companies, Ryckman Creek will have an initial capacity of 18 billion cubic feet (“BCF”), all of which is currently under contract. The project’s full capacity is expected to be 35 BCF.
Ryckman is positioned to serve the natural gas market hub at Opal.
Gas prices on the Northwest Pipeline at Opal, Wyoming, are a key price point for Rockies natural gas. Opal is also where the newly in-service 682-mile Ruby gas pipeline starts, transporting Rockies supplies across Western states to Oregon. (Reporting by Michael Erman, editing by Matthew Lewis)