Caliche Development Partners II said it, along with its partners, would buy Central Valley Gas Storage (CVGS) from Southern Co and the underground natural and industrial gas company also announced the acquisition of Golden Triangle Storage Inc (GTS).
The deals help Caliche target regions with increasing demand for storage to support variable power loads, natural gas liquefaction, and high penetrations of renewable resources.
GTS is located in Jefferson County, Texas, while CVGS is at Colusa County, California.
Caliche and partners Orion Infrastructure Capital and GCM Grosvenor said both the deals were for a total of $186 million.
“We believe the investment opportunity for underground storage is robust in light of market dynamics and ongoing energy transition initiatives across the globe,” said Matthew Rinklin, managing director at GCM Grosvenor, an asset management firm.
The GTS deal closed earlier this month, while the CVGS purchase is expected to close in 2023.
Source: Reuters.com