Houston- Based Crestwood Equity Partners Sells Off Salt Cavern Storage Site

Houston-based Crestwood Equity Partners and Brookfield Infrastructure entered into an agreement to sell the Tres Palacios Gas Storage facility for $335 million. Crestwood will receive approximately $168 million for its 50% interest in the storage facility and plans to use all sale proceeds to reduce borrowings on its revolving credit facility. The buyer was not disclosed.

The storage facility is inside a salt cavern in Matagorda County, Texas, just south of Houston. The facility offers natural gas storage and wheeling services and is connected to 10 interstate and intrastate pipelines via a 60 mile 24” bi-directional header system. The interconnects offer the ability to serve multiple markets in the Midwest, Texas, Mid-Atlantic, Northeast & Southeast United States regions as well as Mexico.

The sale was Crestwood’s third major sale of a storage, pipeline or shale asset in the last twenty four months. The company says it wants to spin off some non-core assets so it can finance growth in the Williston, Delaware and Powder River basins.