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Deal with Tampa Electric Prompts Bay Gas to Add Third Storage Cavern in Alabama

EnergySouth subsidiary Bay Gas Storage said it plans to add a third storage cavern at its McIntosh storage field in Washington County, AL, and will boost the field's injection and withdrawal rates as a result of a new storage services deal it signed with Tampa Electric Co.

Based on the agreement, Bay Gas will expand its surface facilities and leach a third salt cavern by the summer of 2007. The McIntosh gas storage field, which entered service in 1994, currently includes two gas storage salt domes with a total of 6 Bcf of working capacity, 200 MMcf/d of injection capability and 610 MMcf/d of deliverability. The third cavern will add 5 Bcf of working capacity along with injection and withdrawal capacities of 225 MMcf/d and 600 MMcf/d, respectively.

Upon completion, McIntosh will have a total working gas capacity of 11 Bcf. The McIntosh salt deposit has room to add numerous additional caverns, possibly 10 more. In addition to the two gas caverns, the field also currently has seven chemical chlorine caverns. It is located about 40 miles north of Mobile. The gas storage operations have direct pipeline interconnects with Florida Gas Transmission, Gulf South Pipeline and Mobile Gas Service Corp.

"We are making substantial investments to expand our storage facility and are extremely pleased to add Tampa Electric Co. to a growing list of utility clients from the state of Florida," said Bay Gas COO Greg Welch. Tampa Electric serves 640,000 customers in central Florida.

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