El Paso’s Colorado Interstate Gas Co. (CIG) pipeline has obtained environmental approval of its proposal to convert a depleted oil and gas field near Denver for use as a natural gas storage facility.

“Approval of this project would not constitute a major federal action affecting the quality of the human environment,” the staff of the Federal Energy Regulatory Commission (FERC) concluded in its environmental assessment of the storage project [CP08-30].

The proposed Totem Gas Storage facility, to be located 34 miles northeast of Denver, would provide natural 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. It would have total capacity of 10.7 Bcf, comprised of 7 Bcf of working gas and 3.7 Bcf of base gas.

The project calls for 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 said it hopes to begin construction in the second quarter of this year, with the storage project going into operation in June 2009.

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