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Perryville Gas Proposes Storage Facility in Northeast Louisiana

Perryville Gas Storage LLC has asked FERC for authorization to build a new salt dome natural gas storage facility in Northeast Louisiana.

The project would have 15 Bcf of working gas capacity in two caverns to be located in Franklin and Richland parishes, with a maximum injection rate of 226 MMcf/d and a maximum withdrawal rate of 600 MMcf/d. Houston-based Perryville Gas also proposes to construct 14.4 miles of 24- and 36-inch diameter pipeline to deliver natural gas to CenterPoint Energy Gas Transmission and Columbia Gulf Transmission, as well as one 9,500-hp compressor station.

The company asked the Federal Energy Regulatory Commission (FERC) to issue a final order by Dec. 1 of this year and grant it a construction period of five years. It said it expects to have the facilities in service by June 2012.

"The project will support further development of domestic gas production in the Gulf Coast and Midcontinent regions, as well as the addition of new LNG [liquefied natural gas] in the United States, and the development of markets in the eastern United States," Perryville Gas said in its application [CP09-418].

"The location is ideal for a high-deliverability gas storage project because of the close proximity of extensive natural gas pipeline infrastructure near Delhi, LA."

Perryville Gas is 100% owned by Cardinal Gas Storage Partners LLC, which was formed in 2008 as a joint venture of Martin Resource Management Corp. and Energy Capital Partners for the purpose of developing and owning gas storage facilities.

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