Plains All American has sold Pine Prairie and Southern Pines natural gas storage facilities, located in south Louisiana and east Mississippi respectively, to an affiliate of Hartree for $850m.
The assets consist of approximately 70 billion cubic feet of total working gas capacity across nine caverns, along with associated base gas, header pipelines and compression facilities.
The sale is part of Plains’ deleveraging program, said CEO Willie Chiang. “Successful completion of this transaction will enable Plains to exceed our 2021 asset sales target of $750m, generating additional free cash flow and building momentum to reduce debt and increase investor returns,” he explained.
“The Pine Prairie and Southern Pines natural gas storage facilities are two of the highest performing natural gas storage facilities in the United States,” said Steve Semlitz, co-founder of Hartree Partners. “We are attracted to the facilities’ strategic location in the Gulf Coast and diverse mix of pipeline, utility and LNG customers. Hartree looks forward to working with the existing management and operating teams to build upon their outstanding customer relationships and operating track record.”
Subject to the receipt of regulatory approvals and customary closing conditions, the transaction is expected to close in the third quarter of 2021.
For more information visit: www.plainsallamerican.com