Approximately 90% of the existing storage capacity at Tres Palacios is under firm storage contracts; and Inergy expects to enter into firm storage contracts for the capacity scheduled to be placed into service in the fourth quarter, consistent with its strategy of delivering stable, predictable cash flows for unitholders. Inergy expects the Tres Palacios acquisition to be immediately accretive to distributable cash flow per common unit of Inergy, L.P.The Tres Palacios acquisition creates a significant additional gas storage footprint to Inergy’s existing platform and creates the largest independent natural gas storage provider in the United States. In addition to the approximate 38.4 Bcf of storage capacity (Caverns 1, 2 and 3), Tres Palacios provides Inergy attractive future expansion opportunities on the Markham salt dome. If fully developed, the Markham salt dome has the capacity to support in excess of 150 Bcf of natural gas storage capacity, subject to market demand. “The Tres Palacios facility is well positioned to supply the large daily needs of the Texas natural gas fired power generation market as well as leverage Inergy’s existing customer relationships in the natural gas storage industry,” said Bill Moler, Senior Vice President of Inergy Midstream.
Inergy To Acquire Tres Palacios Natural Gas Storage Facility
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