Alinda announces $505m gas storage deal

Alinda Capital Partners, the New York-based infrastructure fund manager which closed a new fund on $4bn earlier this year, has made a major move into the US gas storage market through the $505m NorTex Gas Storage Company deal.

An affiliate of Alinda Capital Partners has acquired the entire equity interests of NorTex Gas Storage Company, a wholly owned subsidiary of Falcon Gas Storage Company, in a $505 million deal which includes the repayment of all third-party debt. Falcon was acquired by Bahrain-based Arcapita Bank and affiliates in July 2005.

NorTex owns and operates two natural gas storage facilities in North Texas totalling 35 billion cubic feet of capacity. The NorTex facilities serve the Dallas-Fort Worth metroplex which, according to a statement announcing the deal, is an area of “rapidly growing demand”. They also serve the Barnett Shale, a 6,000 square mile reservoir of natural gas covering much of North Texas.

Natural gas:
getting stored
by Alinda

The facilities are: Worsham-Steed in Jack County, a depleted oil and gas reservoir serving Dallas-Fort Worth with a working gas capacity of 23 billion cubic feet; and Hill Lake in Eastland County, which serves the West Texas to Dallas/Fort Worth to Carthage energy corridor and which has current working gas capacity of 12 billion cubic feet.

“Storage facilities such as NorTex are essential infrastructure components in the US energy market where gas will play a key role for the foreseeable future,” said Alinda managing partner Chris Beale in a statement.

Alinda, which has assets of $7 billion under management, has invested in a wide range of infrastructure assets including natural gas distribution facilities and gas pipelines, airports, roads, water and rail.

*Be sure to check out the April 2010 issue of Infrastructure Investor magazine, which includes an extensive keynote interview with Chris Beale.