Bay Gas Storage Co. has begun initial injections of natural gas into its second salt dome gas storage cavern located at its facility near Mobile, AL. The company recently completed the first phase of cavern two.

“Phase I of the second cavern more than doubles Bay Gas’ storage capacity and provides an excellent springboard for further expansion,” said John S. Davis, CEO of EnergySouth Inc., Bay Gas’ parent company. “In fact, Phase II development is well ahead of schedule and will provide additional capacities by late-spring.”

The first phase added working gas capacity of 2.5 Bcf, while phase two will bump up total working gas in the second cavern to 4 Bcf. All together, the two caverns at the facility will hold 6 Bcf., with injection and withdrawal capacity of 225 MMcf and 610 MMcf/d, respectively.

“The market has responded very favorably to the news that Bay Gas will have additional capacities available by late-spring,” said Gregory H. Welch, president of Bay Gas Storage. “Discussions about available storage capacity are underway with several interested parties, and we hope to conclude those very soon.”

First announced in July of 1999, Bay Gas expected to have Cavern Two operational by December 2002, and fully operational by March 2004 (see Daily GPI, July 6, 1999; Nov. 29, 2000). The caverns have direct connections to Florida Gas Transmission, Gulf South Pipeline and Mobile Gas Service Corp.

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.