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Contemplated Expansions Could Double Spindletop Storage Capacity

DCP Midstream LLC subsidiary Centana Intrastate Pipeline (CIPCO) will expand the working gas capacity at its Spindletop storage facility in Beaumont, TX, the company said.

The expansion will consist of two phases. Phase one is a 2.5 Bcf increase currently under development and to be available September 2009. CIPCO is also evaluating a 6 Bcf phase two expansion that, subject to customer interest, could be available for service September 2011. A nonbinding open season will run April 1-30 and will be for storage services linked to both phases.

Spindletop currently has 8.5 Bcf of working capacity and 22,000 hp of compression. The expansions could add up to an additional 13,500 hp.

"Our Spindletop salt cavern storage facility is distinguished by its high deliverability and its strategic location to the Beaumont/Port Arthur industrial market and to two future LNG [liquefied natural gas] import terminals," said Poe Reed, DCP Midstream vice president for natural gas marketing.

One of those terminals is Sabine Pass LNG, currently owned by Cheniere Energy Inc., which said last month that it was looking for ways to optimize the terminal's value (see Daily GPI, Feb. 26). The other terminal is ExxonMobil's Golden Pass LNG LLC, which is expected to begin operations in 2009 (see Daily GPI, Nov. 21, 2003).

The Spindletop facility has receipt and delivery capability with intrastate and interstate pipelines Texas Eastern Transmission, Sabine Pipeline, Florida Gas, NGPL, Kinder Morgan, Energy Transfer, Channel Gas, and proposed deliveries with Trunkline, Transco and Golden Pass.

A DCP spokeswoman said no more information was available about the potential expansion.

For information on the open season, contact Greg Swidensky at (713) 735-3785, gaswidensky@dcpmidstream.com or Jack Beckham at (713) 735-3623, jabeckham@dcpmidstream.com.

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