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Bay Gas to Build Pipeline, Add Storage Cavern

Bay Gas to Build Pipeline, Add Storage Cavern

More natural gas transportation and storage capacity is on the way in Alabama as Bay Gas Storage Co. Ltd. released its plans for a 24-inch pipeline in Mobile County which began construction in late November. The EnergySouth subsidiary also has an additional salt dome storage cavern under construction.

Bay Gas' new pipeline will travel 18 miles between an interconnect at Koch Gateway's 30-inch interstate pipeline west of Mobile to its existing pipeline system in Axis, AL. The new line is expected to help bump up natural gas supply to meet the rising needs of new gas-fired electric generating facilities along the Gulf Coast. The pipeline is expected to be completed and in service in June 2001.

"Because of all this demand for growth and storage space to serve the markets, we need to put in more capacity to move gas to the interstates," said Bill Coffeen, vice president of corporate development for EnergySouth. The new pipeline is essential in serving storage, but it is also necessary to increase capacity to the mainline to serve gas-fired power plants, Coffeen added.

The company also reported that its storage expansion project, which was initially announced during July of 1999 is currently under construction. The addition of a second salt dome storage cavern will increase the total working gas capacity of the site from 2.1 Bcf to 5.6 Bcf (see NGI, July 12, 1999).

"For a reference, the cavern will be big enough to put the Empire State Building in it, or the Eiffel Tower," said Coffeen. He said he expects the second cavern to cost $35 million.

The additional cavern, known as Cavern Two, will be located on the company's complex in McIntosh, AL, which is directly connected to the interstate pipeline systems of Florida Gas Transmission, Koch Gateway and Mobile Gas Service Corp., a subsidiary of EnergySouth.

The withdrawal capacity for Cavern Two will be 350 MMcf/d, with an injection capacity of 110 MMcf/d. Pre-existing Cavern One only has a withdrawal capacity of 260 MMcf/d, and an injection capacity of 50 MMcf/d.

Bay Gas expects to have Cavern Two operational by December 2002, and fully operational by March 2004.

Alex Steis

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