Inergy to Acquire Texan Natural Gas Storage Facility

Inergy is to acquire Tres Palacios Gas Storage, which owns the Tres Palacios natural gas storage facility, for $725m in Texas, US.

The facility is a salt dome natural gas storage unit with about 38.4bcf of working gas capacity including 27.1bcf of working gas capacity in Caverns 1 and 2.

The facility will also have an additional working gas capacity of 11.4bcf when Cavern 3 is commissioned in the last quarter of 2010.

When Cavern 4 enters service in 2014 the working gas capacity will further expand by 9.5bcf.

Tres Palacios has a greater than six-turn gas storage capability with a maximum withdrawal capacity of 2.5bcf per day and a maximum injection capacity of 1bcf per day.

Tres Palacios also provides future expansion opportunities for the Markham salt dome.

If fully developed the Markham salt dome will be able to support over 150bcf of natural gas storage capacity.