Energy Transfer to Acquire Southern Union
Natural gas is booming in the U.S., and some say the country’s reserves make it the Saudi Arabia of natural gas. In the last decade, hydraulic fracturing technology has allowed vast shale reserves—once thought unreachable—to be tapped. The gas boom is drawing huge investment from giant oil and gas companies as well as a slew of start-ups eager to get into the newly revived industry. Now, two major players in the natural gas business are merging to form what will become the largest natural gas pipeline company in the U.S.
Energy Transfer Equity LP has agreed to buy Southern Union Co. for $4.2 billion. The acquisition will allow Energy Transfer’s vast presence in key natural gas shale production areas to integrate with Southern’s access to markets in the Midwest and Florida.
The new industry giant will have the capacity to move more than 30 billion cubic feet of natural gas per day along some 45,000 miles of pipeline. This equates to approximately half of the natural gas in the U.S.
SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK
Energy Transfer will acquire $3.7 billion in debt from Southern Union.
The "mind-boggling" levels of natural gas liquids production coming out of the Permian Basin and Eagle Ford Shale areas of Texas has already tied up pipeline systems in the region, Energy Transfer Chief Executive Kelcy Warren said during a conference call with investors. “I personally see a train wreck if someone doesn't build takeaway capacity in that region very soon. We're committed to doing that."
After the completion of the acquisition in the first quarter of 2012, Energy Transfer will have access to more shale production areas than any other company in the U.S. It is already planning to invest an additional $1.7 billion in expansion projects.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.