By the OGJ Online Staff
HOUSTON, Feb. 28�Salt Plains Storage Inc., a subsidiary of Alberta Energy Co. Ltd., has acquired a 15 bcf gas storage facility in Grant County, Okla., from Manchester Gas Storage Inc. and its affiliate MGL Inc. for $42 million.
The deal was approved earlier this month by the Federal Bankruptcy Court for Northern Oklahoma and closed Feb. 26.
Salt Plains will rename the plant, 110 miles north of Oklahoma City, Okla., Salt Plains Gas Storage Facility. It is tied to the Williams and Oneok gas transportation pipelines and can inject 100 MMcfd of gas and withdraw 200 MMcfd.
Salt Plains will be offering both long and short-term firm storage services effective Apr. 1.
AEC has a hub in southeast Alberta and storage at Hythe, Alta., and near Gridley, Calif., plus leased storage capacity in the Gulf Coast and Midwest regions. AEC's North American gas storage network has a total capacity of 133 bcf.
"This acquisition strengthens our North American network of gas storage facilities. Salt Plains is ideally located in a region where demand for natural gas as a primary fuel for heating and power generation is growing," said Rick Daniel, vice-president of AEC Storage and Hub Services and president of Salt Plains Storage Inc.