MANAMA, 21 September 2005 — Arcapita Bank, a leading Bahrain-based investment firm, announced on Monday that it and its co-investors have acquired a majority equity interest in Falcon Gas Storage Company Inc., one of the largest independent owners of natural gas storage capacity in the United States. The total value of the transaction was approximately $100 million.
Falcon owns, develops, and operates a portfolio of strategically located natural gas storage facilities in Texas and Alabama. The company’s Alabama facilities are particularly well positioned to serve the important markets in the southeast of the United States, including Florida.
With Arcapita’s support, Falcon plans to complete two major expansions of existing facilities and commence development of a third, consolidating its leading position in the market. Falcon Gas provides natural gas storage services to a broad range of companies in the energy sector including power producers, electric and gas utilities, energy traders and gas producers.
Atif A. Abdulmalik, CEO of Arcapita, said: “As the world’s largest consumer of natural gas, US demand for gas storage facilities is considerable. Falcon is well positioned to profit from the fast growth in gas demand as the company adds scale.”