Icon NGS LLC is holding a 30‐day, nonbinding open season through Sept. 23 for its Tallulah Gas Storage (TGS) project in northeastern Louisiana about 15 miles east of the Delhi Hub and adjacent to the west‐to‐east pipelines connecting supply to and from the Delhi Hub.
The project is to be composed of three high‐deliverability, multi‐cycle (HDMC) salt caverns with working gas capacity of 8 Bcf per cavern for a total of 24 Bcf. The project will be designed to inject 900 MMcf/d and withdraw up to 1,575 MMcf/d. The in‐service date for the initial 8 Bcf cavern is targeted for September 2013, to be followed by caverns 2 and 3 in September 2014 and September 2015, respectively. Tallulah Gas Storage LLC is expected to file for its Section 7(c) certificate authority with FERC around the end of August.
"Icon NGS recognizes the need for storage to serve the growing Delhi Hub and is pleased to be developing this high‐deliverability, multi‐cycle storage project to benefit the shippers moving gas through the Delhi Hub," said Icon CEO Andy Lang. "The Tallulah project is another step in our commitment to develop storage assets to serve the Delhi market. Our technical due diligence and work with the stakeholders in the Tallulah area coupled with the project's strategic location adjacent to the East‐West corridor give us confidence that this project will move forward on a timely schedule."
By 2011 there is expected to be 15 Bcf/d of gas flowing into and out of the Delhi Hub area, and currently there is no existing HDMC storage uniquely positioned to support the Delhi Hub, Icon said.
The TGS project, located in Madison Parish, LA, sits within three miles of the pipeline corridor containing Southeast Supply Header (SESH), Mid‐Continent Express Pipeline (MEP), Gulf South Pipeline and Columbia Gulf's mainline system. TGS will request authorization for bidirectional interconnects with each of these interstate pipelines, Icon said, and will offer a full range of traditional storage and hub services at market-based rates.
In July TGS received temporary exemption from the Federal Energy Regulatory Commission to drill two stratigraphic test wells for brine disposal and salt core as part of the project due diligence.
The open season will be offering up to 24 Bcf of storage with the first cavern scheduled to begin service in September 2013 ahead of the 2013-2014 winter season. More information is available at www.tallulahgas.com.
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