Avoca Storage Sold to Blue Dolphin
In a bid to complete what others have failed to accomplish, Blue
Dolphin Gas Storage LLC announced its plans to purchase the Avoca
Gas Storage facility from Northeastern Gas Caverns LLC last week.
With the purchase, Blue Dolphin will become the third owner of the
facility this year. No financial terms of the transaction were
The Avoca facility, located in southwestern New York, was once
touted as the first high-deliverability salt cavern storage play in
the Northeast. The original design concept was for a 5 Bcf working
gas storage facility with 250 MMcf/d injection capacity and 500
MMcf/d withdrawal capacity. The storage cavern would have
interconnects with the Tennessee, National Fuel and CNG systems.
Although many of the facilities are in place, the play is not
operational because the leaching phase was never accomplished.
"The facility as a whole is very near completion," said Robert
White, a spokesman for Blue Dolphin said. "The leaching is the big
obstacle left. Other owners have had trouble with this phase, but
we think we have a workable solution to the situation. White said
Blue Dolphin will perform feasibility studies during the next few
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