The Bobcat assets interconnect with five major interstate pipelines, including Spectra Energy's Texas Eastern Transmission.
Spectra Energy Corp., Houston, (NYSE: SE) has acquired the Bobcat development project and associated gas storage assets from Haddington Energy Partners III LP and GE Energy Financial Services for $540 million.
Strategically on the Gulf Coast near Henry Hub, the Bobcat assets interconnect with five major interstate pipelines, including Spectra Energy's Texas Eastern Transmission, and complement the company's existing pipeline and storage portfolio in the region.
The company expects to invest an additional $400 to $450 million to fully develop the facility by the end of 2015, bringing the facility's total working gas storage capacity to 46 billion cubic feet.
Spectra president and chief executive Greg Ebel says, "The Bobcat assets, as well as the employees that are joining the Spectra Energy family, are a very important addition to our leading Gulf Coast storage position. Storage infrastructure such as Bobcat plays a vital role in meeting customers' needs for managing demand swings on a seasonal basis and satisfying the increasing demand for natural gas-fired power generation."
Spectra Energy is a natural gas infrastructure company that provides midstream service including gathering and processing, transmission and storage, and distribution.