PAA Natural Gas to buy storage facility for $750 million

(BestGrowthStock) – PAA Natural Gas Storage (PNG.N: ) agreed to acquire SG Resources Mississippi LLC for about $750 million to expand in the gulf coast market.

The primary asset of SG Resources Mississippi is the FERC-regulated Southern Pines Energy Center natural gas storage facility, located in Greene County, Mississippi.

The facility is permitted for 40 billion cubic feet (bcf) of working capacity from four storage caverns, the Houston-based company said in a statement.

The deal is expected to close in the first quarter of 2011.

PAA Natural Gas Storage has arranged $800 million to fund the deal and for its expansion plans for the first 18 months.

The company is also looking at increasing its cash distribution by 2 percent to $1.38 per share.

(Reporting by Vaishnavi Bala in Bangalore; Editing by Gopakumar Warrier)

PAA Natural Gas to buy storage facility for $750 million