Sawgrass Storage LLC is holding a nonbinding open season for high-deliverability underground gas storage and a hub development project just west of Perryville in Lincoln and Union Parishes in Northeast Louisiana.

The open season began Oct. 12 and will extend through Nov. 16. Sawgrass Storage, which was formed by subsidiaries of Nicor Inc. of Naperville, IL, and Samson Contour Energy E&P LLC of Tulsa, OK, is seeking bids for firm service projected to begin on June 1, 2012.

The project initially would provide up to 25 Bcf of working capacity with the ability to expand to 40 Bcf. Firm injection and withdrawal capabilities would be 250 MMcf/d and 625 MMcf/d, respectively. Sawgrass estimates its customers could cycle inventories up to three and a half times per year.

The project would feature a storage and gas handling facility, a dual (high and low pressure) header system with compression in the heart of the Perryville region, and 27 miles of 30-inch diameter pipeline connecting the storage complex to the header system. Sawgrass began the pre-filing process at the Federal Energy Regulatory Commission (Docket PF10-20-000) in June.

There are potential interconnects with up to 10 major pipelines in the Perryville region, including CenterPoint Energy Gas Transmission, Mississippi River Transmission, Gulf South Pipeline, Tennessee Gas Pipeline, Texas Gas Transmission, Southern Natural Gas, ANR Pipeline Company, Texas Eastern Transmission, Gulf Crossing Pipeline and Midcontinent Express Pipeline.

In addition to the firm storage services, Sawgrass also proposes to offer a menu of hub services including wheeling between the various pipeline interconnections.

For information contact John Fortman at (630) 245-7845 or jfortma@nicor.com, or Oscar Towne at (630) 245-7814 or otowne@nicor.com. Information is also available at www.sawgrassgas.com.

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