Black Bayou LLC has filed an application with FERC for a certificate of public convenience and necessity that would authorize the company to construct, own, operate and maintain a salt dome natural gas storage facility in Cameron Parish in western Louisiana.
Black Bayou is proposing to develop the storage facility on the Black Bayou Salt Dome, located seven miles northeast of Sabine Lake. The bulk of the project facilities will be located in Cameron Parish, but some of the project pipelines will extend for a short distance into Calcasieu Parish, LA.
The Black Bayou project will have an initial working gas capacity of 14 Bcf. Customers will be offered firm, multi-cycle storage service with up to eight turns per year. The project is located within 25 miles of six existing or proposed liquefied natural gas (LNG) terminals which are designed for more than 15 Bcf/d of regasification capacity. The storage facility will include bi-directional interconnects with the Transco Southwest Lateral, the proposed Kinder Morgan Louisiana Interstate Pipeline and the proposed Sempra Port Arthur Pipeline, which are designed to have a total of more than 5 Bcf/d of delivery capacity when completed.
Black Bayou proposes to begin construction of the storage facility in May 2008 and to begin initial operations in April 2011.
Black Bayou is also seeking authorization to provide open-access firm and interruptible interstate natural gas storage and storage-related services, and to construct, acquire, operate, and abandon certain other facilities, charge market based rates for its proposed interstate storage services and storage-related services, and gain Federal Energy Regulatory Commission (FERC) approval for a gas tariff that sets forth the rates and terms of service for interstate storage and storage-related services.
In January, Black Bayou announced it was holding a binding open season for service at Black Bayou Salt Dome (see NGI, Jan. 22). At that time the company said the initial phase of the project would include two caverns with a total of 11 Bcf of working gas capacity, 730 MMcf/d of deliverability and 365 MMcf/d of injection capability A company spokesman said Black Bayou had space for as many as 20 salt domes, each with 5-6 Bcf of working gas capacity.
Prospective customers seeking additional information or wanting to discuss storage opportunities should contact John Boone at (918) 491-4440.
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