Petal Goes Back to Original Expansion Proposal
Petal Gas Storage L.L.C. ate a little crow at FERC last week. It
conceded that its original proposal for expanding the
deliverability capacity serving its storage facilities was a better
plan after all.
In an application filed last week, Petal again asked the
Commission for the go-ahead to build 59 miles of pipeline from its
storage header facility near Hattiesburg, MS, to interconnections
with Southern Natural Gas, Transcontinental Gas Pipe Line and
Destin Pipeline [CP01-69].
This was nearly identical to the plan that Petal Gas proposed in
December 1999 after Southern Company contracted for 7 Bcf of
Petal's storage capacity. Southern estimated it needed 700,000
MMBtu of firm deliverability into the three pipelines, and a
maximum daily receipt quantity of 350,000 MMBtu from the pipes.
But Petal Gas ditched the proposal after El Paso Energy acquired
its then parent, Crystal Gas Storage Inc., in January 2000.
Instead, it proposed an expansion of its existing interconnect with
Tennessee Pipeline, an El Paso affiliate.
"Subsequent events, however, made clear that the Tennessee 500
Line alternative would not provide sufficient capacity for Petal's
long-range plans, and that Petal would need to reconsider its
original proposal," the storage company told FERC last week. The
results of a March 2000 open season revealed that Petal "would soon
need the entire capacity of a 36-inch pipeline providing
interconnections with Transco, SNG and Destin."
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