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Falcon Says 3.5 Bcf of Working Storage Capacity Available in April

Falcon Gas Storage Co. last week said that up to 3.5 Bcf of working gas storage capacity will be available at its Hill-Lake facility beginning April 1. It reported that currently all 10 Bcf of Hill-Lake's working gas storage capacity is fully subscribed through the end of this winter.

"Most of our existing customers already have renewed and extended their contracts for the 2005-2006 season even though this winter is not yet over. Given the strong interest in gas storage in the North Texas/Dallas-Fort Worth market, now is the time for customers to begin contracting for storage capacity for the upcoming injection/withdrawal season," said Falcon President John M. Hopper.

Hill-Lake, a high-deliverability, multi-cycle (HDMC) gas storage facility, is located in Eastland County, TX, and serves energy markets in the Dallas-Fort Worth and North Texas areas, as well as markets at the Waha Hub in West Texas and the Carthage Hub in East Texas. It interconnects with multiple intrastate pipelines, including Atmos Energy's Line X and Line WA, the Energy Transfer/Enterprise Products' (GulfTerra) North Texas Pipeline and Enbridge's Line KC.

Falcon, the largest independently owned developer and owner of HDMC gas storage capacity in the U.S., provides more than 20 Bcf of working gas storage capacity in the Texas markets and in excess of 500,000 MMBtu/d of peak-day deliverability capability.

Last March, Falcon increased its presence in the Northeast gas storage market by purchasing the remaining 50% interest in Greyhawk Gas Storage Co. LLC from a subsidiary of Nova Scotia-based Emera Inc. But it turned around and quickly sold the Greyhawk asset to SemGas LP., a subsidiary of SemGroup LP, last month (see NGI, Jan. 24).

Falcon said it planned to use the proceeds from the Greyhawk sale to complete the Phase II expansion of its Hill-Lake storage facility, and to advance the development of its MoBay Storage Hub, a HDMC storage project that will serve the Southeast and Florida markets.

For more information about Falcon storage services contact Jeff Foutch, executive vice president of marketing, at (713) 623-5906 or at jhfoutch@falcongasstorage.com.

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