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
"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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