Arcadia Gas Storage (AGS) is holding a nonbinding open season through Jan. 18 for salt cavern natural gas storage service in North Louisiana. AGS is offering a total of 15.5 Bcf of working gas storage capacity to be developed in three phases at its existing facility near Arcadia, LA.

AGS, a Martin Resource Management Corp. (MRMC) affiliate, plans to convert four existing salt caverns. Three of the converted caverns are expected to be in service with a total of 0.8 Bcf of working gas capacity by next August. The fourth cavern will be enlarged to hold 0.7 Bcf of capacity, with service in August 2008. In Phase II and Phase III, Arcadia plans to construct two new caverns with 7.0 Bcf of working gas capacity each. The first cavern would be available for service in late 2009, while the second would be in service in late 2011.

The storage facility is expected to initiate service through interconnects with the Regency Intrastate Gas Pipeline and PanEnergy (Pelico), however, depending on customer demand, additional interconnects could be added in the future, AGS said.

“Our strategic location in North Louisiana puts us in the fairway of the new pipes providing takeaway capacity for the growing North Louisiana, North and East Texas production, including the Barnett Shale,” said MRMC CEO Ruben Martin. “Our potential customer base includes gas-fired electric generation, local distribution companies, pipelines for operational and contract support, natural gas producers and natural gas marketing firms. With the available interconnects, our market starts in North Louisiana and could ultimately include the Southeast, Mid Atlantic, Northeast and Florida.”

An Expression of Interest form should be faxed by the close of the open season to Jeff Ballew at (903) 983-6327. More information may be obtained at www.arcadiagasstorage.com , by calling Ballew at (903) 983-6229 or by sending an e-mail to jeff.ballew@martin-gas.com ; or call David Hayden at (251) 895-3884 or send an e-mail to david.hayden@martin-gas.com .

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