The expected flood of regasified LNG entering the Gulf Coast region in the next few years has prompted plans for another high-deliverability gas storage project. Black Bayou Storage LLC, which is owned by three privately owned companies, is holding a binding open season for service at a planned 11 Bcf salt dome storage facility in Cameron Parish, LA.

Black Bayou, which would be located seven miles northeast of Sabine Lake, would provide customers with up to eight storage cycles per year starting in 2009. The initial phase of the project will include two caverns with a total of 11 Bcf of working gas capacity, 730 MMcf/d of deliverability and 365 MMcf/d of injection capability. The open season is scheduled to run from Jan. 18 to March 8.

“This new project is located within 25 miles of six existing or proposed LNG terminals with over 15 Bcf/d of regasification capacity,” noted John Boone, project leader for Black Bayou. “The Black Bayou Storage Project will come into service at the same time a large influx in LNG is forecasted to be delivered into [southwestern] Louisiana.”

The project will include bi-directional interconnects with Transcontinental Gas Pipe Line’s Southwest Lateral, the proposed Kinder Morgan Louisiana Interstate Pipeline and the proposed Sempra Port Arthur Pipeline. These three pipelines are expected to provide more than 5 Bcf/d of transportation capacity. Boone said Black Bayou has space for as many as 20 salt domes, each with 5-6 Bcf of working gas capacity, if the market needs them.

Black Bayou intends to request market-based rate authority in its application with the Federal Energy Regulatory Commission. For more information contact John Boone at (918) 491-4440.

Black Bayou Storage is jointly owned by Tulsa-based Kaiser-Francis Oil Co., Denver-based Samuel Gary Jr. and Associates and Denver-based Nexus Resources LLC. Kaiser-Francis Oil Co. also has a stake in the 6 Bcf Wyckoff Gas Storage project in Steuben County, NY, with partner SemGas LP (see Daily GPI, April 13, 2006).

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