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EnergySouth Plans Bay Gas Storage Expansion

EnergySouth Plans Bay Gas Storage Expansion

EnergySouth Inc., a holding company for utility and storage companies in the Southeast, announced an expansion plan Friday for the storage facilities of its subsidiary Bay Gas Storage Co. The plan calls for an additional salt cavern to be developed, which will increase the total working gas capacity of the site from 2.4 Bcf to 6 Bcf. An open season will be held from July 15 until Aug. 31 to help assess the final size and shape of the expansion.

The storage facility is located near Mobile, AL, and currently consists of a single 3.5 Bcf cavern, with direct connections to Florida Gas Transmission, Koch Gateway Pipeline and Mobile Gas Service Corp., a utility subsidiary of EnergySouth. The injection rate of 35 MMcf/d and withdrawal rate of 260 MMcf/d would increase to 250 MMcf/d and 600 MMcf/d. The project could be complete by September, 2001.

"Bay Gas Storage is located at the crossroads between the natural gas production coming onshore in the central gulf coast and the growing market for that gas in the southeastern United States," said Bill Coffeen, vice president of corporate development for EnergySouth. "In that position, Bay Gas Storage customers can take advantage of opportunities on both the supply and the demand side."

Bay Gas Storage is currently approved by FERC for "market-based" rates and will seek similar treatment for the expansion. For additional information on EnergySouth and its expansion of Bay Gas Storage Company please contact Greg Welch at (334) 450-4749.

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