FERC has issued a favorable environmental assessment (EA) to Atmos Pipeline and Storage LLC, an affiliate of of natural gas distribution provider Atmos Energy Corp., to build a nearly 25 Bcf high-deliverability storage facility in Fort Necessity in northeastern Louisiana.

The Atmos project “would not constitute a major federal action significantly affecting the quality of the human environment,” said agency staff in the EA on the Fort Necessity Gas Storage Project. “Staff recommends that the Commission order contain a finding of no significant impact and include the mitigation measures listed…as conditions to any certificate the Commission may issue.”

The proposed facility would provide about 15 Bcf of working gas capacity and 9.75 Bcf of cushion gas in three newly developed salt caverns in the Fort Necessity Salt Dome, which is located 12 miles south-southwest of the City of Winnsboro in Franklin Parish, LA. In addition to the caverns, the project application — which was filed at the end of 2008 — calls for the construction of pipeline and compression facilities (see Daily GPI, Nov. 14, 2008).

The storage site would be capable of receiving and injecting gas at a maximum rate of up to 500 MMcf/d and withdrawing and delivering gas at a maximum rate of up to 1.5 Bcf/d, according to the Federal Energy Regulatory Commission (FERC) EA. It would interconnect with Tennessee Gas Pipeline, Columbia Gulf Transmission, ANR Pipeline and Regency Energy Partners LP, an intrastate pipeline.

When completed the facilities would provide high-deliverability storage capacity to serve the growing natural gas demand of electric generation facilities, large industrial customers, pipelines and other end-users, the company said.

“The project is needed to provide new natural gas storage capacity in the Gulf Coast production area. Fort Necessity is particularly well suited for such capacity given its location downstream of historical interstate pipeline bottlenecks. In addition, the Fort Necessity storage location will provide access to markets in the Gulf Coast, Midwest, Southeast and Northeast regions as well as access to competitive natural gas supply from the Barnett Shale, Haynesville Shale and Gulf Coast onshore and offshore production areas,” Atmos Pipeline told FERC.

The project “will be highly flexible because of its ability to cycle up to six times per year. Furthermore, the project will provide high deliverability rates and injection capabilities…The project also has the ability to act as a ‘shock absorber’ for subscribing customers because it provides both operational and marketing opportunities that are not available in traditional reservoir storage fields.”

Atmos Pipeline has requested that FERC grant it market-based rate authority to provide firm and interruptible storage and hub services. The parent company, Dallas-based Atmos Energy, is one of the largest local distribution companies in the nation, providing natural gas and transportation service to approximately 3.2 million customers in the Midwest, South, West and Mid-Atlantic areas.

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