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Falcon Files Plans for 50 Bcf MoBay Gas Storage Project

Falcon Gas Storage said its MoBay Storage Hub Inc. subsidiary has filed an application with FERC to develop a new 50 Bcf high-deliverability gas storage project in southern Alabama, where it will be connected to the Gulfstream, Transco, Gulf South and Florida Gas Transmission pipelines. The project will add another multi-cycle gas storage field with market-based rates to the Gulf Coast region.

"When fully developed, MoBay will provide interstate shippers and local gas consumers with up to 50 Bcf of working gas capacity and a maximum daily withdrawal capacity of 1 Bcf per day," said Falcon COO Edmund Knolle. "Designed to maintain continuous withdrawal operations during Category 5 hurricane conditions, MoBay will serve as a vital source of reliable gas supply for Alabama and the Southeast during any deepwater supply disruptions caused by increased hurricane activity in the Gulf of Mexico, as well as during summer and winter peak demand periods."

In a non-binding open season in March, MoBay received indications of interest for more than 1.3 Bcf/d of withdrawal capacity from electric utilities, local distribution companies, producers, marketers and Gulf Coast LNG importers. To date, the company has finalized binding precedent agreements with Florida Power & Light and PPM Energy for 10 Bcf of working gas capacity and 400,000 Dth/d of daily withdrawal capability.

MoBay is planning future pipeline connections with Dauphin Island Gathering Partners, ExxonMobil Mary Ann, Shell Yellowhammer and Williams Mobile Bay processing plants, as well as the local gas distribution company serving industrial, commercial and residential end-users in the Mobile, AL, area. The company has requested FERC authorization by Nov. 1 and it plans to initiate service in October 2007.

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