Enterprise sells US gas storage complex for $550m
Enterprise Products has agreed to sell its Mississippi natural gas storage facilities to Boardwalk HP Storage Co. for $550 million. The Mississippi facilities have approximately 29 billion cubic feet of total storage capacity.
"We are pleased to execute this sales agreement," said Michael A. Creel, CEO for Enterprise. "While we believe our Mississippi natural gas storage complex is one of the most attractive on the US Gulf Coast, the complex is a standalone asset that does not integrate with our natural gas pipeline systems.
“Asset integration is one of Enterprise's core principles in creating incremental value for our partners,” he continued. “We believe the Mississippi facilities will be more valuable to Boardwalk HP Storage, whose affiliate, Boardwalk Pipeline Partners, has complementary assets that may facilitate additional business opportunities and synergies."
Enterprise currently has approximately $7 billion of energy infrastructure growth projects under development, according to Creel, and intends to reinvest the proceeds from this sale to partially fund construction of projects integral to the company’s midstream energy system.
“Including this transaction, we have sold approximately $1 billion of assets in 2011 that Enterprise acquired through mergers that were either standalone facilities or assets that were not strategic to our system,” said Creel.
“This redeployment of capital reduces our need to access the capital markets and we believe will lead to incremental growth in Enterprise's distributable cash flow and enhance the value of our partnership units," he added.
This transaction is subject to customary regulatory approvals and is expected to close during the fourth quarter of 2011, according to the company.
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