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Avoca Storage Sold to Blue Dolphin

December 6, 1999
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Avoca Storage Sold to Blue Dolphin

In a bid to complete what others have failed to accomplish, Blue Dolphin Gas Storage LLC announced its plans to purchase the Avoca Gas Storage facility from Northeastern Gas Caverns LLC last week. With the purchase, Blue Dolphin will become the third owner of the facility this year. No financial terms of the transaction were disclosed.

The Avoca facility, located in southwestern New York, was once touted as the first high-deliverability salt cavern storage play in the Northeast. The original design concept was for a 5 Bcf working gas storage facility with 250 MMcf/d injection capacity and 500 MMcf/d withdrawal capacity. The storage cavern would have interconnects with the Tennessee, National Fuel and CNG systems. Although many of the facilities are in place, the play is not operational because the leaching phase was never accomplished.

"The facility as a whole is very near completion," said Robert White, a spokesman for Blue Dolphin said. "The leaching is the big obstacle left. Other owners have had trouble with this phase, but we think we have a workable solution to the situation. White said Blue Dolphin will perform feasibility studies during the next few months.

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