By Houston Business Journal

Spectra Energy Corp. has agreed to buy the Bobcat Gas Storage assets and development project from Haddington Energy Partners III LP and GE Energy Financial Services for $540 million.

Once the transaction closes by yearâ¿¿s end, Houston-based Spectra Energy (NYSE: SE) said it will invest another $400 million to $450 million to fully build out the facility by the end of 2015.

When completely up and running, the salt dome storage caverns in southeastern Louisiana will have a total working gas storage capacity of 46 billion cubic feet. At that point, Spectra Energy's total North American storage capacity will be about 340 billion cubic feet. The Bobcat Gas Storage assets currently has working gas storage capacity of about 19 billion cubic feet.

The Bobcat Gas Storage Project was developed by Port Barre Investments LLC, which is owned by members of management, Houston-based Haddington Energy Partners III LP, a private equity fund managed by Haddington Ventures LLC and GE Energy Financial Services, the energy investing unit of GE (NYSE:GE).

Located in Port Barre, La., the project began development in 2006 went commercial in November 2008.

Spectra Energy President and Chief Executive Greg Ebel said the natural gas storage facilities will complement Spectra⿿s company⿿s existing pipeline and storage assets in the region ⿿and provide us with a platform for significant future storage growth.⿝

Haddington Managing Director J. Chris Jones said the Bobcat project ⿿exemplifies Haddington's strategy to acquire, develop and eventually exit midstream energy projects.⿝

Copyright 2010 American City Business Journals

http://houston.bizjournals.com/houston/stories/2010/07/12/daily39.html?ana=thestreet

Copyright bizjournals.com 2010

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