Underground Hydrocarbon Storage

Experts in underground storage  

Haddington’s fund level management team has a broad range of experience in the underground storage business, spanning operations, engineering, regulatory issues and marketing.  In fact, our founding partners are among the leading experts in salt cavern storage.

Today, Haddington focuses both on developing greenfield gas and liquids storage opportunities and acquiring storage projects on previously developed sites.  We understand that development of storage assets is a time-consuming process that can take several years before cash flow.  As a result, we work closely with our portfolio companies through each stage of the process to create a profitable, environmentally safe project that provides needed storage capacity on the energy grid.

The Magnum Energy Project is a multi-purpose, integrated energy storage facility under development in Utah.  The facility will serve initially NGL and eventually natural gas and power storage needs in the Western U.S.  Haddington’s recent investments in natural gas storage have also included Bobcat Gas Storage in Louisiana and Lodi Gas Storage in California. 

In addition, Haddington recently invested in Fairway Energy which is developing crude and condensate storage  in bulk storage caverns to support an influx of new sources of supply to the U.S. Gulf Coast and in Zechstein Energy Storage, which is developing one of the first independent European gas storage projects in Northwest Germany.

 

Salt caverns are formed out of existing salt dome formations usually located 1500 feet plus beneath the surface.  A well is drilled into the formation and large amounts of water are cycled through the well dissolving the salt.  The brine is extracted, leaving a large empty space in the formation for natural gas storage. 

 

Note: The companies mentioned on this page represent all active investments in this sector of the market as of August, 2013.  Holdings are subject to change.