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Cardinal Gas Storage Partners Acquires Two Louisiana Storage Projects

Building up its Louisiana natural gas storage assets, Cardinal Gas Storage Partners LLC has acquired two storage development projects from CenterPoint Energy Gas Transmission Co. (CEGT) an indirect, wholly owned interstate natural gas pipeline subsidiary of CenterPoint Energy Inc., for an undisclosed price.

The projects, located near the Perryville Hub in north Louisiana, include a salt dome project and a depleted reservoir project. The salt dome project, Perryville Gas Storage, is expected to consist of up to 22.5 Bcf of high-deliverability working gas capacity with multiple interconnects, including CEGT's Perryville Hub header system near Delhi, LA. Cardinal said it expects commencement of operations in 2012 and recently said a nonbinding open season will begin June 23 (see Daily GPI, June 10).

The depleted reservoir project, Cadeville Gas Storage, is expected to consist of up to 16.5 Bcf of working capacity with three major interconnects and potential for up to four-turn capability. Cardinal expects commencement of operations in 2011.

"The Perryville area is an important natural gas liquidity point, but it lacks one key component -- storage," said Cardinal CEO Jeff Ballew. "With the recent shale gas discoveries west of this location, including the recently announced Haynesville Shale, and the new pipelines bringing this gas to the Northeast, Midwest, Mid-Atlantic and Florida markets, Perryville will become even more important."

Cardinal, a joint venture of Energy Capital Partners and Martin Resource Management Corp., is focused on the development, construction, operation and management of gas storage facilities throughout North America. Through subsidiary Arcadia Gas Storage LLC, Cardinal is developing a 13.8 Bcf salt cavern facility near Arcadia, LA.

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