Tenaska Power Fund Announces Ownership in Caledonia Gas Storage Project - 04/20/06
OMAHA, Nebraska – Tenaska Capital Management, LLC (Tenaska Capital), manager of the Tenaska Power Fund, L. P. (TPF), announced today that TPF has signed an agreement to purchase a 50 percent ownership interest in Caledonia Energy Partners, L.L.C (CEP), which is converting a depleted natural gas reservoir near Caledonia, Mississippi, into a high-deliverability, multi-cycle gas storage facility.
This is TPF’s third acquisition since it completed its initial fundraising in 2005. Last year, it acquired a 315-megawatt (MW) power plant in Virginia and a 308-MW power plant in Illinois.
The Caledonia gas storage facility, which will be capable of storing 11.7 billion cubic feet of working natural gas, is expected to go into service in the spring of 2007. Subject to market conditions, the facility initially will deliver a maximum of 330,000 thousand cubic feet (Mcf) per day. Substantially all of the facility’s capacity is under firm contract.
The storage facility will be strategically interconnected with Tennessee Gas Pipeline in Lowndes and Monroe Counties, Mississippi. The pipeline serves the growing natural gas demand markets in the Northeast, Southeast and Ohio Valley regions of the U. S.
“We are excited about the opportunities from working with a premier company like Tenaska. The partnership with TPF will provide a host of resources we can use to advance the development of the Caledonia storage project and create a leading gas storage company.” said CEP President Jim Goetz.
Paul Smith, senior managing director of Tenaska Capital, said TPF is pleased to be an owner and partner in the construction and operation of the strategically located gas storage facility. “Higher gas prices and higher gas price volatility, combined with the expected growth in liquefied natural gas, have increased the need for and value of gas storage, and consequently the asset value of storage facilities. In addition, Caledonia is downstream of pipeline constraints in the Gulf Coast region, and hence is geographically very well positioned,” he said.
About Caledonia Energy Partners, L.L.C.
Caledonia Energy Partners (CEP) is a privately held company based in Dallas, Texas. It was founded and is led by two energy industry executives with combined experience in excess of 50 years. The company’s primary business focus is the exploration and production of natural gas and crude oil along with the development, installation and management of midstream assets.
About Tenaska Power Fund, L.P.
Tenaska Power Fund (TPF) is a private equity limited partnership formed by its managing directors and the owners of Tenaska Energy, Inc. (Tenaska) to utilize their proven financial, marketing, technical and operating expertise to invest in a diverse group of energy and power companies and assets in the United States. TPF is held outside of Tenaska’s holding company structure.
About Tenaska Capital Management, LLC
Tenaska Capital, the manager of the Tenaska Power Fund, L.P., is an affiliate of Tenaska Energy, Inc. (Tenaska) which is one of the largest independent power producers in the United States. In 2004, Tenaska was ranked by Forbes magazine as the 24th largest private company in the U.S. Tenaska has developed approximately 9,000 MW of electric generating capacity across the United States. Tenaska affiliates currently own, operate and manage eight power plants in six states totaling approximately 7,400 MW of generating capacity. Tenaska is headquartered in Omaha, Nebraska, with offices in Dallas, Texas; Denver, Colorado; and Calgary, Alberta, Canada. Tenaska affiliates also market natural gas and electric power, with Tenaska’s natural gas marketing affiliate regarded as one of the top ten natural gas marketers in North America. Tenaska affiliates are also involved in fuel supply, gas transportation systems and electric transmission development.
