I Squared to Buy Spire Gas Storage Assets for $650M

I Squared Capital has agreed to acquire Spire Inc.’s natural gas storage assets in Wyoming and Oklahoma for $650 million, as the infrastructure investor looks to scale its presence in energy storage across key U.S. regions.

The transaction includes $600 million in cash at closing and a $50 million fixed, non-contingent deferred payment expected in Spire’s fiscal 2027. Proceeds will help fund Spire’s recently completed acquisition of the Piedmont Natural Gas Tennessee business, finalizing its broader financing strategy.

“This transaction represents another important step in sharpening our focus on our core regulated natural gas utility businesses,” said Scott Doyle, president and CEO of Spire Inc.. “Our gas storage assets have played an important role in serving customers across the Midwest, Rockies and Western U.S., and we appreciate the dedication of the employees who have contributed to their success.”

For I Squared Capital, the acquisition underscores growing investor demand for contracted, infrastructure-like energy assets tied to reliability and grid flexibility.

“We see significant opportunity to build on Spire’s strong foundation, leveraging the platform’s contracted cash flows, strategic connectivity and expansion potential to meet growing demand for reliable and flexible energy solutions,” said Gautam Bhandari, CIO of I Squared Capital.

I Squared plans to enhance operations and pursue expansion opportunities across the Western and Mid-Continent regions, where natural gas storage remains critical to balancing supply and demand.

The deal is expected to close in the second half of Spire’s fiscal 2026. Greenhill & Co., a Mizuho Financial Group affiliate, advised Spire, with legal counsel provided by Vinson & Elkins LLP and Kirkland & Ellis LLP.