Peregrine Midstream Partners subsidiary Ryckman Creek Resources has received $110 million in financing from EQT Infrastructure and a consortium of banks led by ING Capital. The funding will be used to complete HDMC Ryckman Creek Gas Storage Facility in southwestern Wyoming near the Opal Hub. EQT Infrastructure is an owner of Peregrine.
November 12, 2014 12:21 PM Eastern Standard Time
HOUSTON–(BUSINESS WIRE)–Ryckman Creek Resources, LLC, a majority-owned subsidiary of Peregrine Midstream Partners LLC, has secured financing to complete its high-deliverability, multi-cycle (HDMC) Ryckman Creek Gas Storage Facility in southwestern Wyoming near the Opal Hub. The financing facility was provided by Peregrine’s private equity owner, EQT Infrastructure, and a consortium of banks led by ING Capital LLC.
Ryckman Creek experienced a shut down and Force Majeure event in April 2013 due to a malfunction of a Nitrogen Rejection Unit (NRU) facility that caused a fire and the loss of some of the NRU components. Ryckman has been working on reconstructing the NRU and building additional gas handling facilities. Commercial service is expected to begin in summer 2015.
“Throughout the period of financing negotiations, we have continued to make steady construction progress on the facility,” said Peregrine President and CEO Roger Kelley. “We are excited about now having a clear path to getting Ryckman Creek into commercial service for our customers in summer 2015.”
Ryckman Creek has interconnections with five interstate pipelines, which are all connected to the Opal Hub, including the Questar, Ruby, Kern River, Northwest and Overthrust pipelines. Combined meter capacity exceeds 1 Bcfd. Receipts and deliveries with Cheyenne Plains, CIG, WIC and REX also can be scheduled through the Overthrust pipeline. All interconnections are currently operational.
“We are fully subscribed for firm storage service for the 2015-2016 winter season although there may be parking opportunities,” said Executive Vice President and Chief Commercial Officer Jeff Foutch. “We appreciate the patience our customers have had with the startup delay. This is a testament to the quality of Ryckman Creek’s location. We will be holding an open season next year for additional firm storage service capacity that will be available in spring 2016.”
Initial working gas capacity for Ryckman Creek will be 35 Bcf by spring 2016. A Phase II expansion would increase total working gas capacity to 50 Bcf or more depending on market demand.
About Peregrine Midstream Partners LLC
Headquartered in Houston, TX, Peregrine Midstream Partners is a privately-held limited liability company founded in 2009 to pursue development and acquisition opportunities in the midstream energy sector. Peregrine’s midstream business model is focused on natural gas storage, transportation, gathering and processing; NGL extraction; crude oil and NGL production, storage, handling, marketing and sales in association with HDMC natural gas storage development and operations. Please visit Peregrine Midstream Partners at www.peregrinempllc.com.
About EQT Infrastructure
EQT Infrastructure is a EUR 1.2 billion fund that has investments in infrastructure companies in Europe and the United States. More information can be found on www.eqt.se. EQT Infrastructure is not affiliated with EQT Corporation or its affiliates.