Caledonia Energy Partners is holding an open season through June 25 for a proposed 11 Bcf gas storage project at a depleted reservoir in Monroe and Lowndes counties, MS. The proposed storage facility, which is expected to be in service in spring of 2006, is expected to have interconnections with Tennessee Gas’ 500 Leg, Texas Eastern Transmission and Southern Natural.

Caledonia reached an agreement last fall with Nicor Inc. subsidiary Nicor Enerchange LLC, which will provide marketing support for the development of the storage facility. Nicor Enerchange, Nicor’s storage marketing and optimization unit, will lead the project through the marketing stages of development.

Caledonia Storage would initially deliver 300 MMcf/d with an injection capability of about 150 MMcf/d. The company said it expects to offer four-cycle storage service and will consider creative term and pricing alternatives.

“Caledonia’s geographic location lends itself to serving the growing demand for natural gas in markets throughout the Northeast, Southeast and Ohio Valley regions,” said Nicor Exchange Managing Director Stephen Cittadine.

“Given the volatile pricing environment with which energy companies and energy marketers must currently contend, storage plays a more vital role than ever in stabilizing shippers’ natural gas portfolios.”

For details on the open season, go to www.caledoniastorage.com or call Jim Goetz at (972) 691-3332 x212.

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