Gill Ranch Storage LLC (GRS), a subsidiary of NW Natural, has begun service from a new underground storage facility at Gill Ranch near Fresno, CA.

The depleted sandstone gas reservoir facility will ultimately provide 20 Bcf of working capacity to the California market. GRS will be the operator and will own 75% of the facility. Pacific Gas and Electric Co., a subsidiary of PG&E Corp., will own the remaining 25%.

"As this facility achieves its full capacity over the next couple of years, it will be an important addition to the energy infrastructure in California," said GRS President Rick Daniel. "The demand for flexible storage capacity is expected to continue to grow with increasing reliance on natural gas for power generation as the state works to meet its carbon-reduction goals."

Construction began in January (see Daily GPI, Jan. 13). The project was approved by California regulators late last year (see Daily GPI, Oct. 15, 2009).

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