PetroLogistics Natural Gas Storage LLC will launch an open season Wednesday for 1 Bcf of firm gas storage service at its proposed 6 Bcf salt dome storage cavern, which will be located at the Choctaw storage facility in Iberville Parish, LA. The open season, which will conclude April 11, will offer contracts for up to 20 years.
BG Energy Merchants LLC is the anchor customer of the project, and it has executed a precedent agreement under which it will contract for a minimum of 5 Bcf of firm storage capacity and associated injection and withdrawal rights, according to PetroLogistics. BG has agreed to purchase any firm capacity remaining after the open season is completed.
PetroLogistics intends to file for a facility certificate with the Federal Energy Regulatory Commission following the open season. Certificate authority is expected by Nov. 1, and facilities could be in service by Sept. 1, 2008, the company said.
The facility and header pipeline will be capable of receiving and delivering gas from and to Southern Natural Gas Co., Texas Eastern Transmission Corp., Florida Gas Transmission Co., Bridgeline Pipeline System and CrossTex LIG Pipeline Co. The facility will be capable of storing up to 6 Bcf, receiving 150-375 MMBtu/d for injection and delivering up to 300 MMBtu/d.
To review the offer sheet and bid information, click here. For more information, contact Nathan Ticatch, PetroLogistics Natural Gas Storage LLC, 909 Fannin, Suite 2630, Houston, TX, 77010; or via email at firstname.lastname@example.org.
PetroLogistics, which provides pipeline transport and underground storage services to the petrochemical and liquefied petroleum gas industries in Louisiana, is majority owned by Lindsay Goldberg & Bessemer, a New York-based private equity firm.
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