(Rigzone,Friday, September 06, 2019) -- NJR Midstream, a business of New Jersey Resources, has entered into an agreement to acquire Leaf River Energy Center, LLC from Macquarie Infrastructure Partners for $367.5 million.

Leaf River is a natural gas storage facility located in southeastern Mississippi which has connections to six interstate pipelines.

NJR Midstream’s acquisition of the southeastern Mississippi natural gas storage facility is expected to support its long-term net financial earnings growth rate of six- to-eight percent, the company said.

The facility includes three salt dome caverns with a combined working natural gas storage capacity of 32.2 million dekatherms. It also is capable of expanding with an additional storage cavern that would add about 13.1 million dekatherms of storage capacity.

“By leveraging our market expertise, NJR Midstream is well positioned with Leaf River to be a leading Gulf Coast service provider in one of the most significant and growing energy demand centers in the United States,” Steve Westhoven, president and COO of New Jersey Resources, stated in a release. “This transaction is another example of our commitment to pursuing and delivering long-term shareowner value by acquiring high-quality assets with organic growth potential.”

With the acquisition of Leaf River, NJR Midstream will have ownership interests in natural gas storage facilities in the Gulf Coast and Marcellus Shale regions, with working gas capacity of more than 44 million dekatherms.

The transaction is expected to close this year.

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