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Five Southern Co. Utilities to Use Petal Storage

Five Southern Co. Utilities to Use Petal Storage

Petal Gas Storage, a subsidiary of Crystal Oil, announced it signed a major 20-year gas storage agreement with Southern Co. yesterday for firm deliverability from its Mississippi salt cavern storage facility of 700,000 MMBtu/d of gas and storage injection capacity for 350,000 MMBtu/d. Southern Company Services will manage the capacity and will act as an agent for its affiliated operating electric utility companies: Mississippi Power, Alabama Power, Georgia Power, Gulf Power and Savannah Electric.

"This contract with Southern demonstrates the continued need for premium high-deliverability natural gas peaking storage," said Crystal Oil President Joe N. Averett, Jr. "The strategic location of our natural gas storage asset base east of the Mississippi River and our ability to expand, both in terms of additional storage caverns and additional pipeline interconnects, make us the independent contractor of choice to fill this growing demand for natural gas storage."

The agreement with Southern includes capacity that was subject to Petal's open season held September 1998. Petal said it expects to file an application soon with FERC for the facilities required to provide the new services. It currently is constructing a second cavern and related facilities. Its receipt and delivery points are on Transcontinental Gas Pipe Line, Southern Natural Gas, Koch Gateway and Destin Pipeline.

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