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Sempra, ProLiance Form Partnership to Build Louisiana Storage Project

Sempra subsidiary Sempra Pipelines & Storage and ProLiance Transportation and Storage LLC last Monday announced that they struck an agreement to construct, own and operate the Liberty Gas Storage project under development in Calcasieu Parish, LA.

Under the terms of the transaction, ProLiance Transportation, an affiliate of ProLiance Energy Inc., will acquire a 25% ownership in the project for an undisclosed amount. Sempra Pipelines & Storage will retain 75% ownership, along with responsibility for development and operation of the facility, according to the companies.

In addition, ProLiance Energy has agreed to sign a long-term contract for 5 Bcf to 6 Bcf of storage capacity, upon receipt of Liberty Gas Storage's permit from the Federal Energy Regulatory Commission.

The Liberty Gas Storage facility, which will be located near Sulphur, LA, will have a working gas storage capacity of 17 Bcf, and is expected to be in service in the second quarter of 2006, Sempra and ProLiance said. The facility will interconnect with various interstate pipelines in the region that serve markets in the Southeast, Midwest and Northeast. The project will have a maximum injection capability of 500 MMcf/d and a maximum withdrawal capacity of 1 Bcf/d.

Liberty Gas Storage will be located near the Cameron and Port Arthur Pipelines, two new pipelines under development by Sempra Pipelines & Storage, connecting area liquefied natural gas (LNG) regasification terminals to the interstate gas pipeline system. FERC already has awarded Sempra a certificate to build the Cameron Pipeline, while the application for the Port Arthur Pipeline is pending.

Sempra Pipelines & Storage operates 165 miles of high-pressure gas pipelines in the United States and Mexico, and is developing another 230-plus miles to connect major gas supply sources. ProLiance Energy is a natural gas marketer headquartered in Indianapolis, IN.

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