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Petal Holding Open Season for Second MS Cavern

Petal Holding Open Season for Second MS Cavern

Petal Gas Storage, a subsidiary of Crystal Oil Co. of Shreveport, LA, is holding an open season for 3.2 Bcf of storage capacity it plans to add at its high deliverability salt cavern storage facility near Hattiesburg, MS. The open season began last week and continues through Oct. 30.

The expansion project could include additional receipt/delivery points on Tennessee Gas Pipeline, Koch Gateway (low-pressure and high-pressure systems), Transco, Sonat, Destin, and Florida Gas Transmission.

"We're looking at new receipt and delivery points at or near Transco," said David Hayden, Crystal vice president. "It would be near the Heidelberg [MS] Station on Transco. The Sonat point would be near Rose Hill [MS]. Destin [interconnect] is near Enterprise, MS. And that's it right now. We're still working on an option for gas to move south through Florida Gas Transmission and Koch's high-pressure system, and it's going to depend upon response from the open season."

Petal announced its expansion plans in July (See Daily GPI July 8, 1998), including leaching an additional salt cavern with a total storage capacity of 5.2 Bcf, of which 3.2 Bcf would be working gas. The new cavern, when combined with the existing cavern, would result in a facility with 5.8 Bcf of working gas capacity and a total withdrawal capacity of 600 MMcf/d.

Petal will offer traditional 10-day withdrawal service as well as balancing, forwarding, parking and emergency backup services from all the facility's pipeline interconnections. Petal plans to distribute an open season package outlining details of the expansion and services to be offered in the near future and will also seek FERC authorization for the expansion.

Petal is located east of supply area bottlenecks. Information is available at Petal's Web site, www.crystaloil.com/petal and by calling Hayden, (318)677-5511; or Jeff Ballew, (318) 677-5512.

In January, Crystal became the largest independent salt cavern storage operator in the United States with the acquisition of Petal from CMS Gas Transmission and Storage for $29.5 million. The acquisition gave Crystal's subsidiaries more than 6.7 Bcf of working storage capacity in the area with the ability to deliver in excess of 670 MMcf/d. Including the potential expansion and current storage capacity at Petal Gas Storage and Hattiesburg Gas Storage, Crystal would own, through subsidiaries, 15.8 Bcf of high-deliverability salt cavern storage.

Joe Fisher, Houston

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