Macquarie Infrastructure to Put Leaf River Up for Sale


(Bloomberg) -- Macquarie Infrastructure Partners Inc. is preparing to sell its natural gas storage business, Leaf River Energy Center, amid a series of deals in the sector, according to people familiar with the matter.

The underground salt cavern facility could fetch more than $300 million in a sale, the people said, asking not to be identified because the matter is private. The sale process is expected to start in June, they said.

The Smith County, Mississippi-based facility is expected to draw interest from pipeline companies, private equity players, and potentially some of its customers, they said.

A representative for Macquarie declined to comment while a representative for Leaf River Energy didn’t respond to a request for comment.

The decision to sell the asset follows Sempra Energy’s sale in February of its non-utility gas storage business to ArcLight Capital Partners for $328 million. Martin Midstream Partners is also currently marketing its gas storage assets.

Macquarie Infrastructure Partners, a division of Australia’s Macquarie Group Ltd., acquired Leaf River Energy in 2012 for an undisclosed sum, according to a statement at the time.

The facility has three operational caverns and is situated between shale fields in U.S. markets in the Northeast, Mid-Atlantic and Southeast with access to six interstate pipelines, according to its website.

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