AVANGRID reaches agreement to sell gas storage business
ORANGE, Connecticut — February 16, 2018 — AVANGRID, Inc. (NYSE: AGR) today announced that Avangrid Renewables Holdings, Inc., a wholly-owned subsidiary of AVANGRID, has entered into a definitive agreement to sell Enstor Gas, LLC, which operates AVANGRID’s gas storage business, to Amphora Gas Storage USA, LLC, an affiliate of ArcLight Capital Partners, LLC.
Enstor Gas owns and operates natural gas storage facilities in the Gulf Coast and Southwest regions of the United States with a total storage capacity of 88.5 Bcf and a net working gas storage capacity of 67.5 Bcf. Amphora Gas Storage USA is an affiliate of ArcLight Capital Partners, a Boston-based private equity firm focused on energy infrastructure investments.
"We are pleased to have reached this agreement to sell the Enstor gas storage business to Amphora," said Jim Torgerson, chief executive officer of AVANGRID. "The sale of this business to Amphora is consistent with the results of our strategic review of the Enstor gas storage businesses."
The transaction, which is subject to the satisfaction of customary closing conditions, is expected to be completed during the second quarter of 2018.
"On a more personal level, it’s been a privilege working with the Enstor Gas team. I want to thank them all for their hard work and years of service as part of the AVANGRID group," said Torgerson. "I'm extremely proud of what this dedicated group of professionals has accomplished."
This transaction does not include AVANGRID’s Enstor gas trading business, which AVANGRID has agreed to sell to a subsidiary of Castleton Commodities International, LLC in a transaction that is expected to close in March 2018.
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About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $40 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs more than 7,000 people and has been recognized by JUST Capital in 2021 and 2022 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2022, AVANGRID ranked second within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2022 for the fourth consecutive year by the Ethisphere Institute. For more information, visit www.avangrid.com.
About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.
With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.