Stock Market Watch

PAA Natural Gas Storage Agrees to Buy SG Resources Mississippi LLC

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PAA Natural Gas Storage (NYSE:PNG) has announced that it has agreed to buy SG Resources Mississippi LLC.  The deal is likely to be worth $750 million.  PAA Natural Gas Storage is looking to expand its scope in the gulf coast market.

* SG Resources owns Southern Pines Energy Center.
* This energy center is a natural gas storage facility and is regulated by FERC.


Southern Pines Energy Center is located in Greene County in Mississippi. The facility is joined by four storage caverns and has the working capacity of 40 billion cubic feet. Both the companies expect to finalize the deal by the first quarter of 2011.

PAA Natural Gas Storage has said that it has already arranged $800 million for funding the deal. The company has also charted out the expansion plans to be carried out during the first 18 months of the company’s operations. PAA Natural Gas Storage is involved in the business of developing and operating natural gas storage facilities. The company specializes in underground storage facilities. PAA Natural Gas Storage is based out of Connecticut in the USA. The company was formerly known as Energy Center Investments Corporation.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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