Falcon Gas Storage Co. Inc. is holding an open season for 15 Bcf of high-deliverability, multi-cycle (HDMC) capacity at its MoBay Storage Hub, which would expand the project's first phase to 27 Bcf of working gas capacity.
Falcon is in the process of finalizing agreements for 100% of the facility's first phase capacity of 12 Bcf. MoBay will connect directly to Gulfstream Natural Gas System, Florida Gas Transmission, Transcontinental Gas Pipe Line and Gulf South Pipeline.
"Recent supply disruptions along the Gulf Coast, combined with continued growth in gas demand and the unprecedented volatility in gas prices, have substantially increased the value of storage as a long-term strategic asset," said Falcon COO Edmund Knolle. "We've seen significant interest from firms that have not utilized storage in the past. MoBay will be designed to operate in conditions that meet or exceed those under which the interconnecting pipelines are designed to operate."
In July 2005 investment group Arcapita bought a 90% equity stake in Falcon and provided additional capital for completion of expansions at Falcon's Hill-Lake and Worsham-Steed storage facilities (see Daily GPI, July 21, 2005).
MoBay is the most southeasterly underground storage facility in the United States and is located at the confluence of major market and supply area pipelines and processing plants, which serve gas and electric customers in the Southeast and Northeast. Direct bidirectional receipt and delivery points are planned with Gulfstream Natural Gas (Station 410), Florida Gas Transmission (Zone 3), Transco (Zone 4A, Mobile Bay Lateral) and Gulf South (Zone 4). Destin Pipeline will be accessible through the connection with Gulfstream. Receipt point options with supply pipelines include Chevron, Dauphin Island Gathering System (Duke Energy Field Services), Exxon Mary Ann Plant, the Mobile Bay Processing Partners plant, the Shell Yellowhammer plant and the Williams processing plant.
The MoBay open season runs through 5 p.m. CST March 15. For information, visit www.falcongasstorage.com.
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