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MoBay Holding Open Season for South Alabama Storage

MoBay Storage Hub, an affiliate of Falcon Gas Storage Co. Inc., is holding an open season for Phase I storage service beginning Oct. 1, 2009, which will provide 50 Bcf of high-deliverability, multi-cycle capacity with 1 Bcf/d of withdrawal and injection capacity.

Binding precedent agreements already have been executed with nine customers for 29.4 Bcf of MoBay's Phase I working gas capacity. An additional 10 Bcf of Phase I firm service is being offered as part of the current open season. MoBay signed a lease with the state of Alabama for gas storage reservoirs earlier this year (see NGI, Feb. 11).

The MoBay Storage Hub, located in south Alabama at the nexus of the Southeast natural gas pipeline system, would provide customers with direct access to more than 6 Bcf/d of pipeline capacity serving the eastern Gulf Coast, Southeast and Northeast markets. Direct interconnects with Florida Gas Transmission (Zone 3), Gulfstream Natural Gas, Gulf South Pipeline (Zone 4), Southeast Supply Header and Transcontinental Gas Pipe Line (Zone 4A) will be available. Other potential interconnects include Williams Field Services/Mobile Bay Gas Processing, DCP Midstream/DIGP, the Chevron Chandeleur Pipeline System and Mobile Gas Services pipeline. All planned and potential interconnects are within one mile of MoBay's main compressor station. MoBay is located less than 25 miles from the planned Gulf LNG Clean Energy Project in Pascagoula, MS.

Through direct connections with Gulfstream and the Southeast Supply Header, customers will be able to access Destin Pipeline, Southern Natural Gas Co., Columbia Gulf Transmission, CenterPoint Energy Gas Transmission, Texas Eastern Transmission and Tennessee Gas pipelines via backhaul. MoBay is the only storage facility with direct connections to the two main pipelines serving Florida.

"MoBay offers customers an exceptional location and the highest injection rates in the region," said MoBay COO Edmund Knolle. "Interest in market-area storage capable of high injection rates continues to grow as deliveries of unconventional shale gas, offshore production and LNG [liquefied natural gas] come on-line to serve an increasingly weather-sensitive gas-fired generation market in the Southeast. MoBay offers suppliers and users the ability to quickly inject large quantities of gas during off-peak periods for redelivery during peak periods."

Qualified MoBay bidders will be invited to participate in an online bidding process to be held on May 1. Applications must be received by April 11 to participate in the bidding process. For information on the open season, contact John Holcomb at jholcomb@falcongasstorage.com, or Mike Moore at mmoore@falcongasstorage.com or (713) 961-3204.

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