Plains All American To Sell Natural Gas Storage Assets To Hartree Partners For $850 Mln

(RTTNews) - Plains All American (PAA, PAGP) said Tuesday that it will sell its Pine Prairie and Southern Pines natural gas storage facilities to an affiliate of Hartree Partners LP for a total cash consideration of $850 million.

The assets included in the transaction consist of about 70 billion cubic feet of total working gas capacity across nine caverns, along with associated base gas, header pipelines and compression facilities.

The transaction is expected to close in the third quarter of 2021.

Successful completion of the transaction will enable Plains to exceed its 2021 asset sales target of $750 million, generating additional free cash flow and building momentum to reduce debt and increase investor returns, Plains said in a statement.