FERC has approved Petal Gas Storage LLC's proposal to convert an existing salt brine storage cavern within the Petal Salt Dome east of Hattiesburg, MS, for use as a gas storage cavern, and to construct pipeline facilities to connect the cavern with existing storage operations.

The Cavern No. 12A Conversion Project has a proposed capacity of 8.2 Bcf, including 5 Bcf of working gas and 3.2 Bcf of cushion gas. The facility would interconnect with Petal's existing storage facilities through an approximately 1,525-foot, 16-inch diameter pipeline.

In an application filed with FERC in January Petal said the proposed expansion of its firm storage capacity is needed to satisfy the anticipated growing demand for gas storage services in the southeastern United States. The need was demonstrated by the results of an open season conducted last year (see Daily GPI, April 30, 2009), "which indicated market interest in purchasing firm natural gas storage," according to Petal.

Petal, which is a subsidiary of Enterprise Products Partners, had requested FERC approval of its application by June so it could begin development in July in order to meet expected requests for injection in the fall of 2011.

Petal's existing facilities include six gas caverns, three compressor stations, associated pipelines and interconnections approved by the Federal Energy Regulatory Commission since 1993 (see Daily GPI, Feb. 21, 2003; Oct. 25, 2001; Sept 15, 2000; Feb. 25, 1999). Petal offers shippers the ability to reach growth markets in the Southeast and Mid-Atlantic regions through bidirectional interconnects to Tennessee Gas Pipeline, Gulf South Pipeline, Hattiesburg Gas Storage and, through the Petal Pipeline, Transcontinental Gas Pipe Line, Southern Natural Gas and Destin Pipeline.

©Copyright 2010 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.