NYSE listed Plains All American Pipeline (PAA) has offered to purchase all the remaining shares of PAA Natural Gas Storage LP (PNG) which it doesn’t own for a complete purchase of the company.
This latest acquisition offer gives PNG a value of $1.97 billion.
PAA, headquartered in Houston, Texas, is involved in transportation, storage and marketing of crude oil. Purchasing PNG gives them the ability to expand operations to natural gas as well. In the past year alone, PAA has grown 45%.
The price offered for the remaining shares of PNG is 7.9% higher than Tuesday’s closing price.
“It is clear that the next several years will be challenging for PNG on a stand-alone basis,” Plains All American Chief Executive Officer Greg Armstrong said in a statement.
PNG currently owns and operates three natural gas storage facilities in Louisiana, Michigan and Mississippi.