Fairway Energy Partners LLC announced the closing of a private equity offering, the net proceeds of which will be used to fund the construction of the first phase of the Pierce Junction Crude Oil Storage facility. 

Click here to access more information about the Pierce Junction Crude Oil Storage Facility in Shale Experts' Project Database

Fairway plans to use this capital to convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston into crude oil storage service and to build out all of the requisite pipelines, brine ponds, interconnects and pumping capacity to put the facility in commercial service.

This should enable Fairway to provide receipt capability from inbound crude oil pipelines from the Permian and Eagle Ford Basins, the Mid--Continent and Canadian regions as well as the Gulf of Mexico. The hubs provide downstream connectivity to terminals, refineries and water outlets located in the Houston Ship Channel, Texas City and Beaumont/Port Arthur market areas.

FBR Capital Markets & Co., a subsidiary of FBR & Co., served as the sole placement agent and initial purchaser in this offering, which was executed pursuant to Rule 144A under the Securities Act of 1933 and other exemptions.

Haddington was active in facilitating the transaction and will continue as a major investor in Fairway.

Chris Jones, Managing Partner of Haddington, said: "We are very excited about our investment in Fairway. Our long history with underground storage fits well with Fairway's initiative and we look forward to continuing our involvement with the company to advance this critical project into the marketplace."

Fairway's counsel for the transaction was Andrews Kurth LLP. Sidley Austin LLP represented FBR.