Bay Gas Storage is holding a non-binding open season through July 9 to test market interest in adding a third salt cavern to its McIntosh storage field forty miles north of Mobile, AL.

The EnergySouth subsidiary said it is offering up to 5 Bcf of additional working gas capacity and based on the results of the open season will evaluate whether to expand the field or add new interconnects with interstate pipelines.

The McIntosh field has the capability of adding 10 additional salt caverns. It currently has two gas storage caverns with direct interconnects to Florida Gas Transmission, Gulf South Pipeline and Mobile Gas Service. The two caverns have a combined working gas capacity of 6 Bcf with injection and withdrawal capacities of 200 MMcf/d and 610 MMcf/d, respectively, all of which is fully subscribed.

A third cavern would expand working gas capacity and add injection and withdrawal capabilities, as well as possibly new receipt/delivery points with Transcontinental Gas Pipe Line and Gulfstream Natural Gas. The expected completion date for an expansion would be early 2007.

For details contact David Hayden at (251) 478-5817 or dhayden@bay-gas.com or visit www.bay-gas.com.

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