Infrastructure manager I Squared Capital is set to acquire a portfolio of natural gas storage assets in the US from Spire Inc for $650m (€551.2m).
I Squared has agreed to buy the natural gas storage assets of Spire in the US states of Wyoming and Oklahoma in a deal comprising $600m in cash at closing and a $50m deferred payment.
The assets consist of Spire Storage West and Spire Storage Salt Plains. Spire Storage West, located in southwestern Wyoming, comprises two storage fields that can provide up to 55bcf of working gas capacity to customers primarily in the western US.
I Squared Capital said it intended to support the platform’s next phase of growth by enhancing operational capabilities and pursuing expansion opportunities to meet increasing demand for natural gas storage across the western and midwest regions of the US.
Gautam Bhandari, CIO of I Squared Capital, said: “These assets represent a high-quality, strategically located infrastructure platform that plays a critical role in supporting energy reliability across key US markets.
“We see significant opportunity to build on Spire’s strong foundation, leveraging the platform’s contracted cash flows, strategic connectivity and expansion potential to meet growing demand for reliable and flexible energy solutions.”
NYSE-listed Spire said the proceeds from the transaction are expected to partially fund its acquisition of the Piedmont Natural Gas Tennessee business.
Scott Doyle, president and CEO of Spire, said: ”This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses.Under I Squared’s ownership, these assets are well positioned to continue supporting system reliability and resiliency as natural gas remains critical to our nation’s energy independence amid growing energy demand.”
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