FERC approved Caledonia Energy Partners LLC’s (CEP) proposal to expand to 16.9 Bcf its 11.7 Bcf storage facility located in Monroe and Lowndes counties in northeast Mississippi. The expansion is expected to increase maximum daily withdrawal capability to 477 MMcf/d from the current 330 MMcf/d.

Caledonia proposed constructing and operating facilities in two phases in order to expand the Caledonia Field storage facility. In the first phase the company will develop the County Line Field, a depleted production reservoir approximately two miles northeast of the Caledonia Field, as an additional field capable of storing approximately 1.6 Bcf of working gas. Caledonia plans to construct one injection and withdrawal well with two horizontal lateral sections and about 1.8 miles of eight-inch diameter pipeline to connect the County Line Field to the Caledonia Field. In the second phase, Caledonia plans to install 10,000 hp of compression in a new compressor building within the existing compression station at the Caledonia Field.

The Caledonia Field is fully subscribed for firm service through 2010. The facility directly interconnects with Tennessee Gas Pipeline’s 500 Leg, which delivers 2 Bcf/d to markets in the Northeast, Southeast and Ohio Valley regions.

The Caledonia storage facility went into service last year (see Daily GPI, May 2, 2007). At start-up, the facility had an initial maximum withdrawal capacity of 330 MMcf/d and a maximum injection capability of 260 MMcf/d. The Federal Energy Regulatory Commission (FERC) gave environmental clearance for CEP to convert what was then a nearly depleted natural gas reservoir into the Caledonia storage facility more than three years ago (see Daily GPI, Feb. 11, 2005).

Houston-based Enstor Inc., a unit of Spain’s Iberdrola SA, said in May it would buy CEP from Tenaska Power Fund LP and other owners (see Daily GPI, May 20).

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