News Releases
PPM Completes Texas Gas Storage Purchase
December 11, 2002
PORTLAND, Ore. -- ScottishPower's competitive US energy business, PacifiCorp Power Marketing, Inc. (PPM), has completed the acquisition of the assets of Aquila, Inc.'s Katy gas storage facility, two development opportunities and two other storage facilities, all in Texas, at a purchase price of approximately $162 million in an all cash transaction. The acquisition, first announced in August, is expected to be earnings enhancing in the first full year of ownership.
PPM's CEO Terry Hudgens said: "The Katy facility is a proven asset with an excellent location in a major gas network hub, a good customer base, and long-term contracts for its capacity."
The Katy facility, 20 miles west of Houston, has a working capacity of 21 billion cubic feet with about 75 per cent of this capacity under firm contract. Katy, which has been operating for more than 10 years, has interconnects to 13 different pipelines and serves gas storage capacity to a diversified customer base throughout the region.
PPM's role will be to provide gas storage services for local distribution companies, generators and industrials, marketers and producers.
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