Crestwood Equity Partners LP (NYSE:CEQP) and Crestwood Midstream Partners LP (NYSE:CMLP) report that Crestwood Equity has completed the sale of Tres Palacios Gas Storage LLC to the newly formed joint venture between Crestwood Midstream and an affiliate of Brookfield Infrastructure Group for a total cash consideration of $130 million. Crestwood Midstream will own 50.01% of Tres Palacios Holdings LLC and will be the operator of Tres Palacios and its assets.
As part of the transaction, Brookfield Infrastructure has entered into five-year, fixed-fee contracts with Tres Palacios for 15 billion cubic feet of firm storage capacity and 150,000 dekatherms per day of enhanced interruptible wheeling services, effective Nov. 1.
Crestwood Midstream funded its $65 million portion of the purchase price utilizing its $1 billion revolving credit facility. Crestwood Equity utilized the total cash received from the sale to repay $130 million of outstanding borrowings under its revolving credit facility.