PAA Natural Gas Storage LLC (PNGS) is holding a nonbinding open season for 2 Bcf of firm gas storage service to be available in the second quarter of 2010 at its Pine Prairie salt-cavern storage facility in Evangeline Parish, LA.
PNGS is constructing phase I development at Pine Prairie, which consists of three storage caverns with total permitted working capacity of 24 Bcf. Cavern wells one and two have been placed into service with current total working capacity of approximately 14 BCF. Cavern well three is expected to come on line in the second quarter of 2010.
"We believe that Pine Prairie, with its dual header system and bi-directional connectivity to eight major pipeline systems serving the northeastern, midwestern and southeastern natural gas markets, is among the most flexible natural gas storage hubs in the country," said Dean Liollio, president of PNGS. "Pine Prairie's connectivity is enhanced by our off-system transportation capacity, which allows us to also provide storage and hub services to other important market centers such as the Perryville Hub, the Henry Hub and other premium southeastern locations across the Gulf Coast."
Earlier this year PNGS filed an application with the Federal Energy Regulatory Commission for a 24 BCF phase II expansion at Pine Prairie, which would entail the construction of two new 10-BCF caverns and the expansion of cavern wells two and three from 8 to 10 BCF each (see Daily GPI, Feb. 17). Pending receipt of requisite permits, PNGS is targeting to bring this capacity into service in stages beginning in 2011.
PNGS is indirectly owned 50% by Plains All American Pipeline LP and 50% by Vulcan Capital. Last month IntercontinentalExchange (ICE) listed the Pine Prairie facility as a gas market hub on the ICE over-the-counter trading platform (see Daily GPI, April 29).
Interested parties should contact Richard Tomaski at (713) 652-3669 or Brad Ledbetter at (713) 652-3671 or visit www.pineprairieenergycenter.com. The Open Season will end at 2 pm CDT on June 18.
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