Magnum NGLs

Investment Status: realized

Sector: NGL Storage

Investment Fund: Fund IV

Geography: Utah

Initial Investment: Sept. 1, 2013

Date of Disposition:Feb. 1, 2015

A successful first project

The Magnum Project is a multi-purpose integrated energy storage and power generation project that is being developed to serve natural gas liquids (primarily propane and butane), natural gas and power markets in the Western United States. Located in Millard County, north of Delta, Utah, the 2,150-acre site is strategically located at the crossroads of existing and developing electric, natural gas, and petroleum liquids infrastructure. 

The first project subsidiary to enter the construction phase, a Natural Gas Liquids (NGL) storage project, was funded and broke ground in April 2013 and and was put in service by April 2014.  This initial project put in place two operational caverns with 1.9 million barrels of propane and butane storage capacity. Contracts were secured to underwrite the capacity with a mix of supermajors, large refiners, and marketers.  

In February 2015, NGL Energy Partners announced the purchase of Magnum NGLs for $280 million.  Magnum development retains roughy 90% of the developable salt at the Utah site and is exploring additional storage projects in other non NGL commodities such as gas storage, power, crude, and other liquids.  

Additional information can be found on the company’s website at