Five Southern Co. Utilities to Use Petal Storage
Petal Gas Storage, a subsidiary of Crystal Oil, announced it
signed a major 20-year gas storage agreement with Southern Co.
yesterday for firm deliverability from its Mississippi salt cavern
storage facility of 700,000 MMBtu/d of gas and storage injection
capacity for 350,000 MMBtu/d. Southern Company Services will manage
the capacity and will act as an agent for its affiliated operating
electric utility companies: Mississippi Power, Alabama Power,
Georgia Power, Gulf Power and Savannah Electric.
"This contract with Southern demonstrates the continued need for
premium high-deliverability natural gas peaking storage," said
Crystal Oil President Joe N. Averett, Jr. "The strategic location
of our natural gas storage asset base east of the Mississippi River
and our ability to expand, both in terms of additional storage
caverns and additional pipeline interconnects, make us the
independent contractor of choice to fill this growing demand for
natural gas storage."
The agreement with Southern includes capacity that was subject
to Petal's open season held September 1998. Petal said it expects
to file an application soon with FERC for the facilities required
to provide the new services. It currently is constructing a second
cavern and related facilities. Its receipt and delivery points are
on Transcontinental Gas Pipe Line, Southern Natural Gas, Koch
Gateway and Destin Pipeline.
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