Energy Capital Partners and Martin Resource Management Corp. have formed Cardinal Gas Storage Partners LLC, a 50/50 joint venture to build and operate natural gas storage facilities throughout North America. No financial terms were disclosed.
Energy Capital Partners (“ECP”) and Martin Resource Management Corporation (“MRMC”) announced today the formation of Cardinal Gas Storage Partners LLC (“Cardinal”), a 50:50 joint venture focused on the development, construction, operation and management of natural gas storage facilities throughout North America.
Cardinal, through its wholly-owned subsidiary Arcadia Gas Storage LLC, is currently constructing a 13.8Bcf high deliverability salt dome natural gas storage facility in multiple caverns located near Arcadia, Louisiana. Cardinal has plans to develop additional natural gas storage facilities in the future.
“This business has compelling fundamentals as natural gas demand and volatility will increase in the future creating a need for additional natural gas storage capacity,” said Tom Lane, a partner of Energy Capital Partners. “The combination of ECP's and MRMC's shared vision and complementary skills will position Cardinal exceedingly well to achieve our goals,” he added.
Ruben Martin, President of MRMC, added “We are very pleased to have ECP as our joint venture partner in the natural gas storage business. Cardinal has an excellent foundation in the Arcadia facility and we look forward to building on that foundation with the development of additional strategically located natural gas storage assets with our experienced team and resources.”
About Energy Capital Partners
ECP is a private equity firm dedicated to investing in the power generation, midstream gas, renewable and electric transmission sectors of North America's energy infrastructure. The firm's management has substantial experience leading successful energy companies and energy infrastructure investments. ECP has offices in Short Hills, N.J., and San Diego, CA. For more information, visit http://www.ecpartners.com/.
About Martin Resource Management Corporation
MRMC is a leading independent provider of transportation, terminalling, marketing and logistics management services for the energy and petrochemical industries. The company, headquartered in Kilgore, Texas, markets hydrocarbon products and by-products through its facilities located throughout the Gulf Coast region. In addition, MRMC owns a 100% general partner interest and a 35% limited partner interest in Martin Midstream Partners L.P. , a publicly-traded master limited partnership.