Drilling of a fourth high-deliverability salt dome gas storage cavern will begin in September at EnergySouth Inc.’s Bay Gas Storage facility, the company said Friday, with the cavern expected to be in service in fall 2009.
The development of the 5 Bcf cavern represents the initial phase of a planned 10 Bcf expansion that will include a fifth cavern at the south Alabama facility. Total working gas capacity at the Bay Gas Storage facility will reach 22 Bcf, with 2.4 Bcf/d of withdrawal capacity when the fourth and fifth caverns are completed.
“We’re responding to the needs of the marketplace with what we believe is an exceptional storage and pipeline facility,” said EnergySouth Midstream President Ben Reese.
EnergySouth has moved the projected in-service date for Bay Gas Storage’s third cavern, currently under development, to April 2008. The company has been experiencing significant interest in the facility (see Daily GPI, Nov. 20, 2006; Oct. 6, 2006; May 22, 2006).
EnergySouth also said the Mobile, AL-based company is expanding its midstream business operations to include an office in Houston. All current and future midstream operations, including Bay Gas Storage, will operate under the EnergySouth Midstream banner.
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