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Caledonia Storage Expansion Gets FERC Green Light

FERC Thursday approved a proposal by Caledonia Energy Partners LLC, an affiliate of Houston-based Enstor Operating Co. LLC, to expand its existing high-deliverability, multi-cycle storage facility in northeastern Mississippi, as well as a request to vacate authorization to proceed with a separate project.

The order issued by the Federal Energy Regulatory Commission gives Caledonia the go-ahead to increase the maximum allowable operating pressure of the surface facilities of the Caledonia Storage Field in Lowndes and Monro counties, MS, to 3,300 psig from 2,700. In addition, Caledonia proposes to modify the existing compressor station at the storage facility by adding two 4,735 hp gas-fired compressor units, which will operate in conjunction with the three existing units [CP12-33].

As part of the project, known as Delta Pressure-DP33 (DP33), the company also plans to build a 16-inch diameter, high-pressure injection pipeline that will run from a new compressor discharge header to existing lateral piping and well pads. The DP33 Project will enable Caledonia to increase the maximum daily withdrawal rate of the facility to 765 MMcf/d and the maximum injection rate to 717 MMcf/d.

In addition, Caledonia's plans call for it to upgrade its existing Tennessee Gas Pipeline interconnect meter station to match the new capacity of the Caledonia storage facility. Caledonia interconnects with Tennessee 500 Leg, in Zone 1 in an area traversed by numerous interstate pipelines that access the Barnett, Woodford and Haynesville shales. Additionally, this pipeline serves the growing natural gas demand markets in the Northeast, Southeast and Ohio Valley regions of the U.S.

"Upon issuance of this order authorizing the DP33 Project, the Caledonia facility will consist of only the Caledonia Field with a total capacity of 25.7 Bcf," of which 20.6 Bcf will be working gas," the order said.

FERC vacated its July 2008 order authorizing Caledonia's phased County Line Expansion Project. Phase 1 involved the development of the County Line Field, a depleted production reservoir about two miles northeast of the storage facility, that would have been linked with the existing Caledonia Field. Phase II called for the installation of two 5,000 hp electric motor compressor units and associated piping. The project would have increased the maximum certificate capacity of the storage facility to 28.1 Bcf.

In addition to Caledonia, Enstor owns the Freebird Gas Storage facility in Lamar County, AL, 110 miles east of Birmingham. Freebird is on the Tennessee 500 line as well. Enstor also owns Katy Storage Facility just outside of Houston, and the Grama Ridge Storage facility in Southeast New Mexico in Lea County.

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