Duke Energy subsidiary Market Hub Partners (MHP) said it will use utilize Solution Mining Under Gas (SMUG) technology to add a third salt cavern with 8 Bcf of capacity to the Egan gas storage facility in Acadia Parish, LA. SMUG allows the expansion to take place while the storage facility remains in service. The project is expected to be completed in mid to late 2006.

The SMUG technique uses specially designed wellheads and leaching equipment to flush salt from the caverns. The components can switch from injecting fresh water and withdrawing the salt-concentrated brine to injecting and withdrawing natural gas. MHP said it will bring the additional storage capacity to the marketplace with no interruption of service.

The company received FERC authorization for the project in March 2003. It will bring the storage plant’s working gas capacity to 24 Bcf from its current 16 Bcf and will boost total storage space to 31.5 Bcf from 21 Bcf. Deliverability will remain at 1.5 Bcf/d and its maximum injection capability will remain at 800 MMcf/d (see Daily GPI, March 27).

Egan Hub cited significant market growth as the reason for the expansion. It said it received numerous requests for additional storage service. All of its available capacity currently is subscribed.

Egan’s storage facilities interconnect with a number of interstate pipelines, including ANR, Columbia Gulf Transmission, Trunkline Gas, Tennessee Gas, Texas Eastern Transmission, Texas Gas Transmission and Florida Gas Transmission.

“The expansion of Egan will provide additional high-deliverability storage services that can help customers respond to the impact of natural gas price volatility,” said Greg Rizzo, president of MHP. He said the current project will enable the company to “rapidly add more capacity as market conditions warrant.”

“With the belief that additional natural gas infrastructure can mitigate price volatility, we are actively pursuing expansions and new projects across North America that provide greater deliverability at peak times when it’s needed most in an effort to help our customers weather periods of higher prices,” he said.

MHP also owns and operates the Moss Bluff, TX, salt dome which has 16 Bcf of working gas capacity, and the company has received approval to develop another salt dome storage facility in Copiah County, MS.

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