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Two Gulf Coast Region Storage Projects Approved

FERC last Thursday issued certificates for two natural gas storage projects in the Gulf Coast region, each with 20.8 Bcf of total capacity. Approved were the proposed storage facilities of Tarpon Whitetail Gas Storage LLC, a subsidiary of Tarpon Gas Storage LLP; and Black Bayou Storage LLC.

Black Bayou Storage plans to build a high-deliverability salt dome facility on the Black Bayou salt dome, approximately 15 miles west of Hackberry in Cameron Parish, LA. The project would include two caverns with a total capacity of nearly 20.8 Bcf (15 Bcf of working gas and 5.8 Bcf of cushion gas). The facility would have maximum injection and withdrawal rates of 1.2 Bcf/d. The company said it expects to have cavern No. 1 in service by May 2011, and cavern No. 2 in operation by June 2012.

Black Bayou, a subsidiary of Oklahoma-based Kaiser Francis Oil Co., also proposes to build a 2.45-mile, 30-inch diameter pipeline to connect its compressor station (18,940 hp) with Transcontinental Gas Pipe Line and a 4.7-mile, 24-inch diameter pipeline to connect with Kinder Morgan Louisiana Pipeline, both of which will deliver gas to and from Black Bayou's facility [CP07-451, CP07-452, CP07-453].

The company said although no firm precedent agreements have been executed, it has received 12 expressions of interest for service well in excess of the proposed capacity. The Federal Energy Regulatory Commission (FERC) order granted Black Bayou's request to charge market-based rates for its proposed storage and hub services.

Tarpon Whitetail proposes to build a multi-cycle facility to be converted from an existing natural gas production field known as the Aberdeen Gas Storage Field in Monroe County in northeast Mississippi. The project calls for drilling up to 20 new storage wells and two salt water disposal wells; and the construction of a 4.9-mile, 24-inch diameter pipeline header, which would interconnect with Texas Eastern Transmission; a one-mile, 16-inch diameter storage lateral; and a 14,200 hp compressor station [CP08-46].

The project, which would be sited on 106.4 acres, would have a total capacity of 20.8 Bcf, with a maximum withdrawal rate of 300 MMcf/d and a maximum injection rate of 300 MMcf/d.

Tarpon Whitetail also received Commission approval to charge market-based rates for firm and interruptible storage services.

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