Peregrine Midstream Partners is a midstream oil and gas company that owns and operates Ryckman Creek, a depleted natural gas reservoir in Wyoming, US. Ryckman Creek is directly connected to 5 pipelines providing direct access to key consumer markets.
Peregrine provides natural gas storage and related services under contracts of varying length - the facility has a certificated capacity of 53 Bcf.
In addition to revenue from storage services, Peregrine also generates incremental revenue from:
- Providing storage services to power plants or pipelines serving power plants to better meet their hourly load requirement.
- Park and loan services including utilizing spare system capacity for the temporary storage of natural gas.
- Working with a gas marketer to capture seasonal spreads and market volatility.
- Selling oil and natural gas liquids retrieved through enhanced oil recovery.
Peregrine is headquartered in Houston, Texas and was established in 2009 to serve as a platform for the acquisition and construction of midstream oil and gas assets in the US.
Market Trends and Drivers
The need for gas storage depends primarily on the requirement to balance seasonal variation in production supply and consumption demand for natural gas. A fundamental driver is that natural gas is growing in significance as a resource to meet energy requirements of the US as a result of significant increases in actual gas supply and lower prices. Natural gas is also considered an environmentally friendly fuel compared to other fossil fuels.
It is unusual for EQT to engage in a significant construction project, but Peregrine has an experienced management team who are recognized leaders in natural gas storage in the US. Ryckman Creek is unique due to its location in a natural gas production and consumption region. It is strategically located near the Opal Hub and the facility is directly connected to five key pipelines providing direct access to multiple consumer markets.