FERC Tuesday gave Colorado Interstate Gas Co. (CIG) the green light to begin construction of a new natural gas storage project in Adams County, CO.

The proposed Totem Gas Storage facility, for which the agency issued a certificate in early April, calls for the conversion of a depleted oil and gas field near Denver for use as a natural gas storage facility. It would provide gas storage to meet the existing peak-day and load-growth needs for local gas distribution systems along the Colorado Front Range area, according to CIG. The proposed facility would have total capacity of 10.7 Bcf, comprised of 7 Bcf of working gas and 3.7 Bcf of base gas.

The project would include the installation of eight new horizontal injection and withdrawal wells, a 1.4-mile small diameter pipe and the installation of 9,400 horsepower of natural gas-fired compression.

The proposed storage facility would connect with CIG’s existing pipeline network via CIG’s 164-mile High Plains expansion project, which FERC approved in March (see Daily GPI, March 24).

CIG has targeted the project for operation in June 2009.

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