Falcon Acquires Right-of-Way for TX Storage Pipeline

Falcon Gas Storage Co. and its subsidiary, Hill-Lake Gas Storage LP, reported that the right-of-way acquisition has been completed for the construction of a new 17-mile, 20-inch diameter natural gas pipeline that would connect Falcon's Hill-Lake gas storage facility with both Lone Star Pipeline Co.'s Line "X" and the El Paso/TXU Fuels North Texas Pipeline in Eastland County near Dallas/Fort. Worth.

The pipe project was first announced in early April. Construction was scheduled to begin on the 300 MMcf/d pipeline during the first week of August, with operation expected to commence by Nov. 1. Falcon purchased the Hill-Lake storage facility in March from TXU Lone Star Pipeline and is currently providing single-cycle gas storage service to customers on the Lone Star Pipeline system.

John M. Hopper, president of Falcon Gas Storage, said, "With this pipeline, Falcon will be the only independent natural gas storage facility interconnected with the two main east-west natural gas pipelines that connect two of Texas' major gas trading hubs, Waha and Carthage."

Falcon said it is now retrofitting the facility for high-deliverability, multi-cycle (HDMC) storage service in time for the winter heating season. When retrofitting is completed, Falcon said Hill-Lake will have a peak withdrawal capacity of more than 300 MMcf/d, injection capacity of more than 150 MMcf/d and a working gas capacity of 7.5-8.5 Bcf.

The Hill-Lake acquisition was Falcon's second acquisition in less than six months. In October 2000, the company acquired the Worsham-Steed gas storage facility in Jack County, Texas, which is about 50 miles from Dallas/Fort Worth. Both facilities are similar in that they are strategically located near major gas pipelines and electric transmission lines that serve the Dallas/Fort Worth metropolitan area.

Houston-based Falcon Gas Storage Co. said it has a total of more than 20 Bcf of working gas storage capacity with in excess of 600 MMcf/d of peak-day deliverability as well as six additional HDMC gas storage projects in various stages of development in Texas, New York, and the Rocky Mountains.

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