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Bay Gas' High Deliverability Storage Keeps on Growing

The McIntosh salt cavern gas storage operation north of Mobile, AL, continues to grow in response to strong demand for high-deliverability storage in the Southeast region. Bay Gas Storage said Friday that it received expressions of interest from the market for 22 Bcf of additional storage capacity during its recent open season. It plans to add two more 5 Bcf caverns to the field with service beginning in fall of 2009.

The proposed expansion also will include pipeline interconnects with Transco (Station 85) and Southern Natural (York, AL). "The response to our open season affirms our beliefs about the need for responsive and reliable natural gas storage services in the southeastern region and along the East Coast," said Bay Gas COO Greg Welch.

The McIntosh field currently is being expanded by 5 Bcf through the addition of its third salt dome. A deal with Tampa Electric sealed the expansion plans. The third cavern will enter service next summer with the additional working gas capacity, another 225 MMcf/d of injection capability and 600 MMcf/d of incremental deliverability. Total field capacities will reach 11 Bcf of working gas, 425 MMcf/d of injection capability and more than 1.2 Bcf/d of deliverability.

The McIntosh salt deposit has room to add numerous additional caverns, possibly 10 more. Currently there are two gas caverns and seven chemical chlorine caverns. Bay Gas Storage is a subsidiary of EnergySouth Inc., the parent company for a group of subsidiaries operating in the storage and distribution segments of the natural gas industry.

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