Peregrine Midstream Partners subsidiary secures $110m financing to complete gas storage project

Ryckman Creek Resources, LLC, a majority-owned subsidiary of Peregrine Midstream Partners LLC, has secured financing to complete its high-deliverability, multi-cycle (HDMC) Ryckman Creek Gas Storage Facility in southwestern Wyoming, USA.

The financing facility was provided by Peregrine's private equity owner, EQT Infrastructure, and a consortium of banks led by ING Capital LLC.

Ryckman Creek experienced a shut down and Force Majeure event in April 2013 due to a malfunction of a Nitrogen Rejection Unit (NRU) facility that caused a fire and the loss of some of the NRU components. Ryckman has been working on reconstructing the NRU and building additional gas handling facilities. Commercial service is expected to begin in summer 2015.

Peregrine President and CEO Roger Kelley stated:

"Throughout the period of financing negotiations, we have continued to make steady construction progress on the facility. We are excited about now having a clear path to getting Ryckman Creek into commercial service for our customers in summer 2015."

Ryckman Creek has interconnections with five interstate pipelines, which are all connected to the Opal Hub, including the Questar, Ruby, Kern River, Northwest and Overthrust pipelines. Combined meter capacity exceeds 1 Bcfd. Receipts and deliveries with Cheyenne Plains, CIG, WIC and REX also can be scheduled through the Overthrust pipeline. All interconnections are currently operational.

Executive Vice President and Chief Commercial Officer Jeff Foutch commented:

"We are fully subscribed for firm storage service for the 2015-2016 winter season although there may be parking opportunities. We appreciate the patience our customers have had with the startup delay. This is a testament to the quality of Ryckman Creek's location. We will be holding an open season next year for additional firm storage service capacity that will be available in spring 2016."

Initial working gas capacity for Ryckman Creek will be 35 Bcf by spring 2016. A Phase II expansion would increase total working gas capacity to 50 Bcf or more depending on market demand.