QNGS Holdings, LLC, a portfolio company of Quantum Energy Partners, LLC and Larry Bickle, chairman of the combined entities, announced that the company is combining its two natural gas storage development entities, Merchant Energy Partners, LLC of Denver, Colorado and Icon NGS, LLC of Houston.
QNGS assembled two separate teams to pursue development of gas storage across North America.MEP focused its development activities on the Rockies and the western United States while Icon focused on the Gulf Coast and eastern U.S. markets. Both entities have successfully identified, and developed storage projects (through the certification process) that support new supply area pipeline infrastructure. The newly combined company will be called Merchant Energy Holdings LLC.
MEP’s East Cheyenne Gas Storage project in northeast Colorado will create the first merchant storage facility to serve the pipelines connected to the nearby Cheyenne Hub, including the Trailblazer and Rockies Express pipelines. East Cheyenne is one of the resources that will convert natural gas-fired generation to replace the retired coal facilities.
Icon’s Tallulah Gas Storage project is a high-deliverability, multi-cycle salt cavern storage facility in Madison Parish in northeast Louisiana. It is 15 miles east of the Delhi Hub, a confluence of new pipeline infrastructure serving the prolific shale plays in Louisiana, Texas, and Oklahoma. Negotiations are under way to conclude binding commitments with shippers for capacity in the Tallulah project.
The new entity will be led by William A. Lang as president & CEO, formerly the CEO of Icon and Mark A. Fullerton as executive vice president and chief operating Officer. The headquarters for the combined entity will be in Houston with a satellite officer in Littleton, CO.