Atlanta-based AGL Resources said Monday it is kicking off a nonbinding open season later this month for service offerings at its proposed $180 million high-deliverability natural gas storage facility in the Spindletop salt dome in Beaumont, TX.
First announced in December of last year, Golden Triangle Storage, a wholly owned subsidiary of AGL Resources, proposes to develop a natural gas storage facility, consisting of two natural gas salt-dome storage caverns that will provide 12 Bcf of working gas capacity (see Daily GPI, Dec. 8, 2006). The company anticipates filing for Federal Energy Regulatory Commission certification in mid-2007, with construction scheduled to begin in early 2008. The first 6 Bcf cavern is scheduled for full commercial operation in spring 2011, with the second 6 Bcf cavern scheduled to be in full commercial operation in 2013.
AGL said the Golden Triangle Storage project will increase Jefferson County's storage capacity by 80%, "enhancing the area's position as a national energy hub and increasing the functionality of both its existing and planned energy infrastructure." The project will be located on the far southern side of Beaumont on the site of old sulfur mines and continuing oil and gas production, and near existing storage facilities.
The 12 Bcf of working gas capacity is enough natural gas to power more than a quarter million Texas homes for a year. The company added that the facility can be expanded to 28 Bcf.
The company said it is conducting an open season for both phases of the project, which includes the entire 12 Bcf working gas capacity. The open season will extend from 10 a.m. CDT on April 30 to 5 p.m. CDT on May 18.
"Located at a highly liquid market point, Golden Triangle Storage will interconnect with six intrastate/interstate pipelines serving diverse markets with counterseasonal demand," AGL said. "The project is located near natural gas supplies, including East Texas natural gas fields, offshore deepwater wells and natural gas imported through area liquefied natural gas (LNG) terminals."
For more information on the open season, contact Ed Gottlob at (832) 397-1789 or Laura Heckman at (832) 397-8503.
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