Union Gas Limited has acquired a 1 billion cubic feet (Bcf) natural gas storage pool, located near Sarnia, Ontario from Midway Petroleum Company. Union Gas will develop the storage pool which is expected to be in service in 2009.

“This acquisition is part of our overall plan to expand our natural gas storage assets to respond to growing customer demands for natural gas storage and balancing services,” said Steve Baker, vice president, business development. “Our ability to support the additional investment in natural gas storage assets is a direct result of the storage forbearance decision issued by the Ontario Energy Board, last November”.

Last month, Union Gas also signed an agreement in principle regarding the acquisition of a 75 per cent interest in a 3 Bcf storage pool currently owned by Tribute Resources located in Huron County.

Union Gas currently owns and operates the largest underground natural gas storage facility in Canada, and one of the largest in North America.

Tags: Midway Petroleum Company, Union Gas Limited