(Bloomberg) -- Macquarie Infrastructure Partners Inc. is preparing to sell its natural gas storage business, Leaf River Energy Center, amid a series of deals in the sector, according to people familiar with the matter.
The underground salt cavern facility could fetch more than $300 million in a sale, the people said, asking not to be identified because the matter is private. The sale process is expected to start in June, they said.
The Smith County, Mississippi-based facility is expected to draw interest from pipeline companies, private equity players, and potentially some of its customers, they said.
A representative for Macquarie declined to comment while a representative for Leaf River Energy didn't respond to a request for comment.
The decision to sell the asset follows Sempra Energy's sale in February of its non-utility gas storage business to ArcLight Capital Partners for $328 million. Martin Midstream Partners is also currently marketing its gas storage assets.
Macquarie Infrastructure Partners, a division of Australia's Macquarie Group Ltd., acquired Leaf River Energy in 2012 for an undisclosed sum, according to a statement at the time.
The facility has three operational caverns and is situated between shale fields in U.S. markets in the Northeast, Mid-Atlantic and Southeast with access to six interstate pipelines, according to its website.
To contact the reporter on this story: Scott Deveau in New York at sdeveau2@bloomberg.net
To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Matthew Monks, Michael Hytha
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