Inergy Midstream, L.P. (NRGM) acquired 100% of the membership interests in US Salt, LLC (US Salt) from Inergy, L.P. for $192.5 million.
US Salt, located on the shores of Seneca Lake outside of Watkins Glen, NY, is one of five major solution mined salt manufacturers in the United States. The operations are complementary to NRGM’s existing midstream energy storage platform. The solution mining process used by US Salt creates salt caverns that can be developed into usable natural gas and natural gas liquids (NGL) storage capacity. US Salt has 10 Bcf of available cavern space that can potentially be developed into additional natural gas storage capacity.
Bill Moler, Senior Vice President and COO of NRGM, said, “US Salt is characterized by very stable cash flows and adds substantial growth opportunities to our gas and NGL storage business.”