Christopher E. Smith
OGJ Pipeline Editor
HOUSTON, July 16 -- Spectra Energy Corp. reported July 15 a definitive agreement to purchase the Bobcat Gas Storage assets and development project from Haddington Energy Partners III LP and GE Energy Financial Services for $540 million. In addition to the purchase price, Spectra expects to invest $400-450 million to fully develop the facility by the end of 2015.
Once fully operational, the high-deliverability salt dome storage caverns in Point Barre in St. Landry parish in southeastern Louisiana will have a total working gas storage capacity of 46 bcf. Full development of Bobcat will brings Spectra’s total North American storage capacity to about 340 bcf, the company said.
The first phase (Cavern 1) of Bobcat Gas Storage entered service Nov. 1, 2008, with Cavern 2 following Oct. 31, 2009. Bobcat expects it working gas capacity as of summer 2010, after full build-out of both caverns, to total 19 bcf. Bobcat interconnects with five interstate natural gas pipelines, including Spectra’s Texas Eastern Transmission line. Other pipelines the facility interconnects with are Florida Gas Transmission, Transco, Gulf South, and ANR. The facility is near the Gillis and Eunice aggregation points and 45 miles north of Henry Hub, La.
Completion of the transaction is pending regulatory and other approvals, with Spectra expecting it to close before yearend.
Contact Christopher E. Smith at [email protected].
