In a bid to complete what others have failed to accomplish, BlueDolphin Gas Storage LLC announced its plans to purchase the AvocaGas Storage facility from Northeastern Gas Caverns LLC last week.With the purchase, Blue Dolphin will become the third owner of thefacility this year. No financial terms of the transaction weredisclosed.

The Avoca facility, located in southwestern New York, was oncetouted as the first high-deliverability salt cavern storage play inthe Northeast. The original design concept was for a 5 Bcf workinggas storage facility with 250 MMcf/d injection capacity and 500MMcf/d withdrawal capacity. The storage cavern would haveinterconnects with the Tennessee, National Fuel and CNG systems.Although many of the facilities are in place, the play is notoperational because the leaching phase was never accomplished.

“The facility as a whole is very near completion,” said RobertWhite, a spokesman for Blue Dolphin said. “The leaching is the bigobstacle left. Other owners have had trouble with this phase, butwe think we have a workable solution to the situation. White saidBlue Dolphin will perform feasibility studies during the next fewmonths.

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