Duke Energy Gas Transmission and NUI Corp. officially opened their new bedded salt natural gas storage facility in Saltville, VA, Wednesday. Saltville Gas Storage Co., a partnership between the two companies, will operate the high deliverability storage facility, which will have about 1 Bcf of working capacity this winter. The companies plan to add about 1 Bcf/year in working gas capacity until it reaches 6 Bcf in 2007, and then they will consider further expanding it to 12 Bcf.

The new field, which is adjacent to Virginia Gas Pipeline Co.’s existing 1.1 Bcf salt cavern in southwestern Virginia, is now injecting natural gas in preparation for the winter heating season. It is fully contracted for the winter.

“NUI and DEGT have worked closely to move forward with our development of Saltville Gas Storage, a facility that will play an increasingly vital role in supplying needed natural gas to energy providers in the region,” said Mark Abramovic, senior vice president of NUI. “The high withdrawal and quick refill capabilities of the facility will provide a substantial natural gas peaking supply source for the Southeast region of the United States.”

Pat Whitty, East Tennessee’s vice president of marketing, said that more than half of the working gas initially stored at the Saltville facility will be used to serve customers transporting gas through the Patriot Extension, a new 95-mile pipeline currently under construction from the company’s existing East Tennessee Natural Gas (ETNG) system to a connection with Transcontinental Gas Pipe Line in Rockingham County, NC.

“The November in-service of Patriot will allow customers throughout the southeast United States — particularly in North Carolina, Virginia and Tennessee — to receive benefits from this new significant supply source,” Whitty added.

Saltville Gas Storage interconnects with Virginia Gas Pipeline Co. and East Tennessee. At full phase one projected capacity, Saltville will be capable of delivering up to 500 MMcf/d to the surrounding region.

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