US-based private equity firm ArcLight Capital Partners’ affiliate Amphora Canada Gas Storage has completed the purchase of Chevron Alberta Gas Storage (CAGS) from Chevron Canada Properties.
CAGS owns a 43% non-operated interest in Alberta Hub Gas Storage and the remaining interest is owned by Iberdrola Canada Energy Services, which also operates the facility.
The 42.7 billion cubic feet depleted-reservoir natural gas storage facility, located 80 miles west of Edmonton, Alberta, is connected to TransCanada’s NOVA Gas Transmission (NGTL) system.
NGTL provides access to local Alberta markets and to a major North American natural gas trading centre AECO Hub offering connectivity to the west coast, midwest, and north-east markets in the US.
ArcLight Capital Partners managing partner and co-founder Dan Revers said: "The acquisition of an interest in Alberta Hub builds upon ArcLight’s successful history of investing in North American natural gas storage infrastructure.
"The facility is well-positioned to benefit from the increasing storage spreads driven by broadly rising demand for natural gas in North America and LNG export."
Chevron operates the Aitken Creek and the Alberta Hub natural gas storage facilities in Canada.
Together, these facilities have an aggregate total capacity of about 100 billion cubic feet and are located in western Canada, near the Duvernay, Horn River, Liard and Montney shale gas plays.
Chevron provides natural gas storage services as well as products to a diverse customer base.
