FERC last Monday approved PetroLogistics Natural Gas Storage LLC's proposal to build a high-deliverability natural gas salt dome storage cavern and header pipeline at its Bayou Choctaw storage facility in Iberville Parish, LA.

The Houston-based storage developer, which filed an application with the Federal Energy Regulatory Commission (FERC) in August, proposes to build a FERC-jurisdictional storage cavern capable of storing 9 Bcf, of which 6 Bcf would be working gas (see NGI, Aug. 20, 2007). The facility would have the capability to receive approximately 350 MMcf/d for injection and deliver up to 300 MMcf/d.

The company plans to begin construction "almost immediately" and have the storage project in operation by September, said PetroLogistics President Nathan Ticatch.

The project calls for the construction of one 20,000 hp electric compressor station on a two-acre site; a 7.3-mile, 24-inch diameter pipeline; and a 5.83-mile, 16-inch diameter pipeline to deliver volumes to and from the storage facility, as well as bidirectional metering and regulation sites at each pipeline interconnection [CP07-427].

The proposed pipeline header would connect the storage project to several pipelines, including Southern Natural Gas Co., Texas Eastern Transmission LP, Florida Gas Transmission, Bridgeline Pipeline System and CrossTex LIG Pipeline Co.

The project is in a "great location, right outside of Baton Rouge" to connect to the interstate gas pipeline grid, Ticatch said. "We get a whole lot of connectivity."

BG Energy Merchants LLC would be the anchor customer and has executed a precedent agreement for the entire 6 Bcf of firm storage capacity and associated injection and withdrawal rights at the facility, PetroLogistics said.

Ticatch said PetroLogistics already is developing other caverns at the site, which would enable it to provide up to 16 Bcf of additional working gas capacity to the market. But he noted that this would be several years away.

Because PetroLogistics has no market power, the Commission approved the company's request to charge market-based rates for all firm and interruptible storage, hub and wheeling services.

PetroLogistics parent PetroLogistics Olefins LLC operates a nonjurisdictional gas storage cavern at the Bayou Choctaw storage site, along with liquids storage facilities. It also owns and operates pipelines to transport the liquids.

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