Petal Gas Storage, a subsidiary of Crystal Oil, announced itsigned a major 20-year gas storage agreement with Southern Co. lastweek for firm deliverability from its Mississippi salt cavernstorage facility of 700,000 MMBtu/d of gas and storage injectioncapacity for 350,000 MMBtu/d. Southern Company Services will managethe capacity and will act as an agent for its affiliated operatingelectric utility companies: Mississippi Power, Alabama Power,Georgia Power, Gulf Power and Savannah Electric.

“This contract with Southern demonstrates the continued need forpremium high-deliverability natural gas peaking storage,” saidCrystal Oil President Joe N. Averett, Jr. “The strategic locationof our natural gas storage asset base east of the Mississippi Riverand our ability to expand, both in terms of additional storagecaverns and additional pipeline interconnects, make us theindependent contractor of choice to fill this growing demand fornatural gas storage.”

The agreement with Southern includes capacity that was subjectto Petal’s open season held September 1998. Petal said it expectsto file an application soon with FERC for the facilities requiredto provide the new services. It currently is constructing a secondcavern and related facilities. Its receipt and delivery points areon Transcontinental Gas Pipe Line, Southern Natural Gas, KochGateway and Destin Pipeline.

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