Bay Gas to Build Pipeline, Add Storage Cavern
More natural gas transportation and storage capacity is on the
way in Alabama as Bay Gas Storage Co. Ltd. released its plans for a
24-inch pipeline in Mobile County which began construction in late
November. The EnergySouth subsidiary also has an additional salt
dome storage cavern under construction.
Bay Gas' new pipeline will travel 18 miles between an
interconnect at Koch Gateway's 30-inch interstate pipeline west of
Mobile to its existing pipeline system in Axis, AL. The new line is
expected to help bump up natural gas supply to meet the rising
needs of new gas-fired electric generating facilities along the
Gulf Coast. The pipeline is expected to be completed and in service
in June 2001.
"Because of all this demand for growth and storage space to
serve the markets, we need to put in more capacity to move gas to
the interstates," said Bill Coffeen, vice president of corporate
development for EnergySouth. The new pipeline is essential in
serving storage, but it is also necessary to increase capacity to
the mainline to serve gas-fired power plants, Coffeen added.
The company also reported that its storage expansion project,
which was initially announced during July of 1999 is currently
under construction. The addition of a second salt dome storage
cavern will increase the total working gas capacity of the site
from 2.1 Bcf to 5.6 Bcf (see NGI, July 12, 1999).
"For a reference, the cavern will be big enough to put the
Empire State Building in it, or the Eiffel Tower," said Coffeen. He
said he expects the second cavern to cost $35 million.
The additional cavern, known as Cavern Two, will be located on
the company's complex in McIntosh, AL, which is directly connected
to the interstate pipeline systems of Florida Gas Transmission,
Koch Gateway and Mobile Gas Service Corp., a subsidiary of
The withdrawal capacity for Cavern Two will be 350 MMcf/d, with
an injection capacity of 110 MMcf/d. Pre-existing Cavern One only
has a withdrawal capacity of 260 MMcf/d, and an injection capacity
of 50 MMcf/d.
Bay Gas expects to have Cavern Two operational by December 2002,
and fully operational by March 2004.
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