Petal Goes Back to Original Expansion Proposal

Petal Gas Storage L.L.C. ate a little crow at FERC last week. It conceded that its original proposal for expanding the deliverability capacity serving its storage facilities was a better plan after all.

In an application filed last week, Petal again asked the Commission for the go-ahead to build 59 miles of pipeline from its storage header facility near Hattiesburg, MS, to interconnections with Southern Natural Gas, Transcontinental Gas Pipe Line and Destin Pipeline [CP01-69].

This was nearly identical to the plan that Petal Gas proposed in December 1999 after Southern Company contracted for 7 Bcf of Petal's storage capacity. Southern estimated it needed 700,000 MMBtu of firm deliverability into the three pipelines, and a maximum daily receipt quantity of 350,000 MMBtu from the pipes.

But Petal Gas ditched the proposal after El Paso Energy acquired its then parent, Crystal Gas Storage Inc., in January 2000. Instead, it proposed an expansion of its existing interconnect with Tennessee Pipeline, an El Paso affiliate.

"Subsequent events, however, made clear that the Tennessee 500 Line alternative would not provide sufficient capacity for Petal's long-range plans, and that Petal would need to reconsider its original proposal," the storage company told FERC last week. The results of a March 2000 open season revealed that Petal "would soon need the entire capacity of a 36-inch pipeline providing interconnections with Transco, SNG and Destin."

Susan Parker

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