Caliche Development acquires underground gas storage assets

GCM Grosvenor

29/11/2022 17:30

Nov 29 (Reuters) - Caliche Development Partners II said
on Tuesday it, along with its partners, would buy Central Valley
Gas Storage (CVGS) from Southern Co  SO.N  and the underground
natural and industrial gas company also announced the
acquisition of Golden Triangle Storage Inc (GTS).
    The deals help Caliche target regions with increasing demand
for storage to support variable power loads, natural gas
liquefaction, and high penetrations of renewable resources.
    GTS is located in Jefferson County, Texas, while CVGS is at
Colusa County, California. 
    Caliche and partners Orion Infrastructure Capital and GCM
Grosvenor  GCMG.O  said both the deals were for a total of $186
million.
    "We believe the investment opportunity for underground
storage is robust in light of market dynamics and ongoing energy
transition initiatives across the globe," said Matthew Rinklin,
managing director at GCM Grosvenor, an asset management firm.
    The GTS deal closed earlier this month, while the CVGS
purchase is expected to close in 2023.
 (Reporting by Arunima Kumar in Bengaluru; Editing by Shailesh
Kuber)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))