Shale Daily / NGI All News Access

FERC Urged to Act on Marcellus Storage Proposal by August

Affiliate of Peoples Natural Gas Co. LLC seeks to have storage facility operating by start of winter heating season.

Rager Mountain Storage Co. LLC (RMSC), a unit of Peoples Natural Gas Co. LLC, has called on FERC to act by mid-August so it can have existing storage facilities located in the heart of the Marcellus Shale region up and running by the start of the winter heating season.

"A mid-August issuance would provide sufficient time for RMSC to hold a binding open season, and for RMSC to submit a compliance tariff, which would need to be filed by Sept. 1 in order to be effective no later than Nov. 1, the start of the winter heating season, said RMSC, which is a newly formed affiliate of Pittsburgh-based Peoples.

The existing storage facility, owned by Peoples, is located in Cambria County, PA, which includes the Johnstown area. Peoples is seeking Federal Energy Regulatory Commission (FERC) approval to lease it to RMSC.

In amended applications filed last October, RMSC said the working gas capacity of the storage facility would be 2 Bcf rather than the originally proposed 4 Bcf, and deliverability would be reduced to 45,000 Dth/d from 60,000 Dth/d [CP11-5, CP11-6]. It noted that the Pennsylvania Public Utility Commission approved the revisions in April.

RMSC said it conducted a binding open season in April that attracted "considerable commercial interest." But the company rejected all bids until FERC approval of the project is achieved. It expects the agency to approve its application this month.

RMSC said it planned to reconduct a binding open season following the Commission's approval of its applications.

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