PAA Natural Gas Storage LP (PNG) has filed with FERC an application to expand its Pine Prairie Natural Gas Storage salt cavern facility in Evangeline Parish, LA. The proposal calls for the construction of an additional 32 Bcf of working gas storage capacity, including two new 12 Bcf caverns and the expansion of permitted capacity for caverns two through five to 12 Bcf from 10 Bcf each.

The expansion "helps position PNG to meet future customer demand as market conditions warrant, beginning with the 2013 storage season and beyond. Our recent open season confirmed there is solid volumetric demand for Pine Prairie storage capacity," said PNG President Dean Liollio.

Pine Prairie currently has three operating caverns with 24 Bcf of working gas capacity. An additional 18 Bcf of working gas capacity is currently under construction with approximately 7-8 Bcf scheduled to be placed into service in the second quarter 2011 and about 10 Bcf in the second quarter 2012. Receipt of approval from the Federal Energy Regulatory Commission (FERC) for the expansions will boost Pine Prairie's permitted capacity to 80 Bcf from 48 Bcf, the company said.

PNG is a publicly traded master limited partnership engaged in the development, acquisition, operation and commercial management of natural gas storage facilities. PNG currently owns and operates two natural gas storage facilities located in Louisiana and Michigan that have an aggregate working gas capacity of approximately 50 Bcf. PNG's general partner, as well as the majority of PNG's limited partner interests, is owned by PAA.

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