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Sempra, ProLiance Set Open Season for Liberty Gas Storage

In advance of an expected liquefied natural gas surge, Sempra Pipelines & Storage and ProLiance Transportation and Storage LLC Monday launched an open season to solicit market interest in expansion capacity at their Liberty Gas Storage LLC facility in Calcasieu Parish, LA. Bids will be taken until March 2.

With what the partners are calling "strong market response" to the existing 17 Bcf capacity at Liberty and unabated thirst for more gas storage along the Gulf of Mexico coast, the units that Sempra Energy and ProLiance Energy are offering an additional 5 Bcf at the salt dome facility.

Sempra is in the midst of building a 1.5 Bcf/d LNG receiving terminal at Cameron, LA, and has longer-term plans to build another one at Port Arthur, TX. Liberty and a string of salt dome storage units Sempra and ProLiance are planning to build will fit in directly with those two and other LNG importing facilities in the region (see Daily GPI, Sept. 15, 2006).

In its latest move, the Liberty partners are seeking nonbinding bid proposals for contract terms three years and longer with service beginning in April 2009. More information is available at the Liberty website (www.libertygasstorage.com), or from Laura Ann Hutchison (619) 696-2424, or Carlos Mauer (619) 696-1878).

Sempra Piplines & Storage CEO George Liparidis has reiterated in the past that "Louisiana is strategically located to capture natural gas storage opportunities as natural gas infrastructure continues to be added in the Gulf Coast region." He has emphasized that the new import capability at Sempra LNG projects and those of others are creating a significant need for additional pipeline and storage infrastructure.

Sempra Pipelines & Storage builds and operates natural gas pipelines and storage facilities in Mexico and the United States. ProLiance Energy is a natural gas marketer based in Indianapolis with sales offices in six other central states (Illinois, Kentucky, Michigan, Missouri, Ohio and Texas).

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