$180 million of gas storage
12 Aug 2002
ScottishPower's US energy business, PacifiCorp Power Marketing (PPM) has agreed to acquire, in a purchase of assets, Aquila Corp.'s Katy gas storage facility in Texas and four other gas storage development projects for $180 million in cash.
The acquisition is subject to regulatory review under the Hart-Scott-Rodino Act which is expected to be completed within 60 days and other preconditions to closing. The acquisition is expected to be earnings enhancing in the first full year of ownership.
The Katy facility, located 20 miles west of Houston, has a working capacity of 21 billion cubic feet (Bcf). Katy currently has 16 Bcf of the 21 Bcf of working gas capacity under firm contract.
It has been in operation for more than 10 years, has 14 interconnects to 13 different pipelines and serves gas storage capacity to a diversified customer base throughout the region.
PPM's role will be to provide gas storage services for local distribution companies, generators and industrial users, marketers/traders and producers.
