Northern Alabama Gets New Gas Storage Facility

The Northwest Alabama Gas District is opening a new gas storage facility in the state to provide the municipal gas company and other third-party providers with flexibility to meet peak-day requirements while lowering their average cost of gas. The facility, which was funded by $20.3 million in revenue bonds issued by the District in 2000, is located in Lamar County and is expected to give northwestern Alabama an additional asset for attracting new business and industry.

Swift Energy Co. signed a contract to build and operate the East Detroit Natural Gas Storage Facility for the district. It recently completed the first phase of construction is now ready for service. The District is accepting third party gas storage nominations for 2 Bcf of working gas capacity and 20 MMcf/d of deliverability. For information on gas storage services, contact John Schneider at Swift at (281) 874-2700.

A possible second phase of the project would open up additional opportunities to service third-party customers by expanding the facility's storage capacity to 8 Bcf and its withdrawal capacity to 120 MMcf/d, the District said. The facility is connected to the municipal gas distribution system servicing northwestern Alabama but also is located in close proximity to the Tennessee Gas and El Paso Alabama Intrastate pipeline systems. The District also is planning construction of a power plant at the site and intends to buy a 150-acre fee tract adjacent to the facility at a point of intersection with a 500 KV power transmission line.

The Hamilton, AL-based municipal gas utility serves 15,000 customers in seven counties, including customers in its six municipalities of Guin, Hamilton, Hackleburg, Haleyville, Sulligent, and Winfield. Its facilities include over 1,200 miles of main distribution.

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