GE invests $65m in gas storage

has acquired a preferred equity interest in an underground salt dome storage project in Louisiana for $65m. GE bought the asset from

, a Houston-based, energy-focused private equity fund.

The investment, which will also help cover the project’s capital expenditures, enables GE Energy Financial Services to expand in midstream energy, where it already co-owns pipelines, retail distribution and gas processing assets.

The Bobcat gas storage project is located in St. Landry Parish, Louisiana, 45 miles from Henry Hub, the clearing point for NYMEX natural gas futures contracts and the most liquid trading point in the natural gas over-the-counter and cash markets.

GE Energy Financial Services will have a one-time option to convert its preferred interest to 50 percent common ownership of Bobcat within 90 days of the commencement of the project’s commercial operations. RBS Securities acted as advisor to Haddington Energy Partners in the sale of the preferred equity interest and is arranging $185m in senior secured credit facilities to be used in the construction, development and long-term financing.