UIL buys USD 20 Mln LNG storage facility
UIL Holdings Corporation said it purchased a 14.6 million gallon liquefied natural gas (LNG) storage facility and related assets in Milford, Connecticut from subsidiaries of Iberdrola USA for approximately $20 million.
UIL purchased the assets through its subsidiary on July 31, 2014. The Milford facility is operated by the Southern Connecticut Gas Company, which UIL acquired from Iberdrola in 2010 as part of a larger deal that also included Connecticut Natural Gas Corporation and The Berkshire Gas Company.
“Our natural gas supply system is designed to provide gas to firm customers under all weather conditions, and it works,” said James P. Torgerson, president and CEO of UIL Holdings Corporation. “This transaction is another prudent investment we are making to ensure we meet customers’ demands now, but is inclusive of our growing customer base.”
Within the UIL Holdings Corporation gas supply portfolio, there are three liquefied natural gas plants. All are strategically important to UIL’s natural gas distribution service. Besides the plant in Milford, the other two facilities are in Rocky Hill, Connecticut and Whately, Massachusetts. Combined these two other facilities have a storage capacity of more than 14.6 million gallons for liquefied natural gas. This LNG diversification presents another supply option that can be utilized in times of high demand.
Press Release, August 6, 2014; Image: UIL