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SG Resources Seeks to Raise Capacity at Mississippi Storage Facility

SG Resources Mississippi LLC has asked FERC for permission to further increase the capacity of its high-deliverability salt dome gas storage facility in Greene County, MS, by approximately 19 Bcf, bringing total capacity to about 43 Bcf.

Specifically, the storage developer is calling on the Federal Energy Regulatory Commission (FERC) to amend its original certificate that was issued in October 2002, which authorized the construction of a combined 12 Bcf of working gas capacity in two underground caverns at its Southern Pines Energy Center and to amend a subsequent certificate issued in January 2007, which added a third cavern and raised the combined working gas capacity of the facility to 24 Bcf (see NGI, Jan. 29, 2007; Oct. 14, 2002).

The Spring, TX-based company is now seeking to raise the capacity of each of the three FERC-approved caverns to 10 Bcf from 8 Bcf and develop a fourth 12.8 Bcf cavern, as well as construct a 24-inch diameter pipeline loop of the existing Destin Lateral, an interconnect pipeline that will connect the Destin Lateral loop to the Destin Pipeline and Southeast Supply Header meter stations and add two 8,000 hp compressors.

In April SG Resources Mississippi, a subsidiary of SGR Holdings LLC, got the green light from FERC to place into service the first of the three caverns at the Southern Pines Energy Center. The company said it expects to bring a second cavern into service this year, with a third due to become operational in 2010. It noted that it has the capability to develop a fifth cavern in the future, bringing total capacity to 40 Bcf.

FERC has approved for operation direct interconnects between Southern Pines and Destin Pipeline, Florida Gas Transmission (FGT) and Transcontinental Gas Pipe Line (Transco), which will serve markets in the U.S. Southeast and Northeast. FGT's interconnection with the storage facility will accommodate receipts and deliveries of up to 1 Bcf/d, while the Transco interconnection will accommodate up to 600 MMcf/d.

In addition, the storage facility will have indirect access to Southern Natural Gas, Gulf South Pipeline, Gulfstream Natural Gas System and Tennessee Gas Pipeline by way of Destin and another new interconnect with Gulfstream by way of Transco and FGT, according to the company. An interconnect with the Southeast Supply Header is scheduled to go into service this year, SG Resources said.

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