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MoBay Storage Seeks Prompt FERC Approval of Alabama Project

MoBay Storage Hub Inc., a subsidiary of Falcon Gas Storage, has called on FERC to approve by Friday its proposal (see Daily GPI, June 23) to develop a new 50 Bcf high-deliverability gas storage project in southern Alabama.

MoBay said it has executed precedent agreements with Florida Power & L:ight Co. (FPL) and four other shippers for more than 500,000 Dth/d of withdrawal capacity. The maximum daily withdrawal capacity of the proposed storage facility is 1 Bcf/d, the company said. FPL will be the anchor tenant of the MoBay storage project that is to be built and operated by Falcon Gas Storage.

With its participation in the MoBay storage project, FPL will be able to operate its gas-fired plants for up to five days if traditional fuel supply sources are interrupted by hurricanes or other events, the Florida Public Service Commission said recently. It will "substantially improve" FPL's ability to withstand disruptions to Gulf production facilities, the state agency noted.

The storage project, which is targeted for operation in 2008, would be connected to Gulfstream Natural Gas System, Transcontinental Gas Pipe Line, Gulf South Pipeline and Florida Gas Transmission. The project would add another multi-cycle gas storage field with market-based rates to the Gulf Coast region.

MoBay is planning future pipeline connections with Dauphin Island Gathering Partners and the ExxonMobil Mary Ann, Shell Yellowhammer and Williams Mobile Bay processing plants, as well as with the local gas distribution company serving industrial, commercial and residential end-users in the Mobile, AL area.

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