Spire Inc. has agreed to sell its natural gas storage assets in Wyoming and Oklahoma to infrastructure investor I Squared Capital for total consideration of US$650 million, in a transaction that separates Spire’s non-utility storage business and redirects capital toward its core regulated natural gas distribution operations. The spire storage sale covers two strategically located underground storage platforms with a combined working gas capacity of approximately 72 billion cubic feet.
Spire Storage Sale: Transaction Structure and Strategic Rationale
The $650 million consideration comprises $600 million in cash at closing and a $50 million fixed, non-contingent deferred payment to be received in Spire’s fiscal year 2027. The structure gives Spire immediate capital certainty while preserving a defined future receipt — a clean arrangement for a regulated utility managing a concurrent acquisition financing.
Proceeds from the spire storage sale are earmarked to partially fund Spire’s acquisition of the Piedmont Natural Gas Tennessee business, which closed on 31 March 2026, and to complete the related financing plan for that transaction. The sequencing reflects a deliberate portfolio rebalancing by Spire — monetising non-regulated storage infrastructure to fund expansion of regulated utility operations, where earnings are more predictable and the risk profile is lower.
Scott Doyle, President and CEO of Spire, described the transaction as another important step in sharpening the company’s focus on its core regulated natural gas utility businesses. He confirmed the gas storage assets have played an important role serving customers across the Midwest, Rockies, and Western US, and expressed confidence that under I Squared’s ownership the assets are well positioned to continue supporting system reliability and resiliency.
Spire Storage West and Spire Storage Salt Plains: Asset Profiles
Spire Storage West, located in southwestern Wyoming, consists of two storage fields certificated to provide up to 55 billion cubic feet of working gas capacity, primarily serving customers in the western United States. Wyoming underground storage is geologically well suited to natural gas storage given the region’s depleted reservoir formations, and the western US market has faced recurring supply reliability concerns as gas-fired power generation demand has grown alongside renewable intermittency.
Spire Storage Salt Plains, located in north central Oklahoma, is authorised to provide up to 17 Bcf of working gas capacity serving the midcontinent and midwestern US markets. The facility is connected to Southern Star Pipeline and Oklahoma Gas Transmission — two critical midcontinent gas transmission arteries — giving it strong market connectivity and withdrawal flexibility during peak demand periods.
Together the two assets represent a 72 Bcf platform with geographic diversity across the Western and Mid-Continent regions — exactly the footprint an infrastructure investor with a long-term hold strategy would seek to acquire. Scott Smith, President of Spire Storage, confirmed expectations of a seamless transition for employees and customers as the business moves forward under I Squared’s ownership.
I Squared Capital’s Growth Plans for the Platform
I Squared Capital is a global infrastructure investment firm with a focus on energy, utilities, and digital infrastructure. Gautam Bhandari, Chief Investment Officer of I Squared, described the Spire Storage assets as a high-quality, strategically located infrastructure platform playing a critical role in supporting energy reliability across key US markets. I Squared intends to support the next phase of growth for the platform, including enhancing operational capabilities and pursuing expansion opportunities to serve increasing demand for natural gas storage across the Western and Mid-Continent regions.
The investment thesis is straightforward — contracted cash flows from existing storage agreements underpin the acquisition price, while expansion potential provides upside as US natural gas demand grows driven by LNG export volumes, gas-fired power generation, and industrial load growth. Underground storage assets of this scale and connectivity are difficult to replicate and carry significant permitting and geological barriers to entry, making them attractive long-term infrastructure holds.
For context on the global natural gas storage market and the operators competing in this space, see the Top 10 Natural Gas Storage Companies 2026 and the Underground Gas Storage 2026: Global Capacity and Outlook.
Natural Gas Storage M&A and the Utility Divestment Trend
The spire storage sale reflects a broader pattern visible across North American energy utilities — regulated distribution companies divesting non-regulated midstream and storage assets to sharpen their earnings profile and reduce regulatory scrutiny of mixed utility and merchant operations. The $650 million valuation implies approximately $9 per Mcf of working capacity, a reasonable benchmark for strategically connected underground storage in the current market.
The transaction is expected to close in the second half of Spire’s fiscal year 2026, subject to customary closing conditions and expiration of the Hart-Scott-Rodino antitrust waiting period. Greenhill, a Mizuho affiliate, acted as exclusive financial advisor to Spire. Vinson and Elkins served as Spire’s legal counsel. Kirkland and Ellis served as I Squared’s legal advisor. For a wider view of the natural gas storage sector, see the Top 10 Natural Gas Storage Companies 2026. Additional detail on Spire’s transaction is available at Spire’s official website.
What is the Spire Storage sale and how much is it worth?
Spire Inc. has agreed to sell its natural gas storage assets in Wyoming and Oklahoma to I Squared Capital for $650 million — $600 million in cash at closing and a $50 million fixed deferred payment in fiscal 2027. The assets have a combined working gas capacity of approximately 72 billion cubic feet.
What assets are included in the Spire Storage sale?
The sale covers two platforms — Spire Storage West in southwestern Wyoming, with up to 55 Bcf of working gas capacity serving western US markets, and Spire Storage Salt Plains in north central Oklahoma, with up to 17 Bcf of capacity connected to Southern Star Pipeline and Oklahoma Gas Transmission serving midcontinent and midwestern markets.
Why is Spire selling its natural gas storage assets?
Spire is divesting its non-regulated storage business to sharpen its focus on core regulated natural gas utility operations. Proceeds will partially fund its acquisition of the Piedmont Natural Gas Tennessee business, which closed on 31 March 2026, and complete the related financing plan.
Who is buying the Spire Storage assets?
I Squared Capital, a global infrastructure investment firm focused on energy, utilities, and digital infrastructure. I Squared intends to enhance operational capabilities and pursue expansion opportunities across the Western and Mid-Continent natural gas storage markets.
When is the Spire Storage sale expected to close?
The transaction is expected to close in the second half of Spire’s fiscal year 2026, subject to customary closing conditions and expiration of the Hart-Scott-Rodino antitrust waiting period.