By OGJ editors
HOUSTON, Aug. 22 -- Plains All American Pipeline LP and Vulcan Capital agreed to pay $250 million to acquire a Sempra Energy subsidiary having two natural gas storage utilities.
Bluewater Gas Storage in St. Clair, Mich., has a 20 bcf capacity, and Pine Prairie Energy Center is a 24 bcf project still under development in Louisiana. Pine Prairie is expected to be operational in mid-2007 and fully developed by late 2009.
The transaction is expected to close in September, subject to regulatory approvals and other closing conditions.
The Plains All American-Vulcan joint venture is owned equally by Plains All American and a subsidiary of Vulcan Capital. Plains All American will be responsible for the JV's daily operations.
The JV anticipates investing an additional $260 million during the next several years to complete the Pine Prairie development.
