FERC has issued a favorable environmental review of Egan Hub Storage LLC’s proposal to add 10.5 Bcf of total storage capacity (8 Bcf working gas) at its facility in Acadia and Evangeline Parishes, LA.

“We believe that the project…with the implementation of our recommendations would not have a significant impact on resources within the defined project area, and that approval of this proposal would not constitute a major federal action significantly affecting the quality of the human environment,” FERC staff concluded in its environmental assessment of the Egan storage project [CP07-88].

Egan Hub, an affiliate of Spectra Energy, proposes to expand its existing storage facility by developing a new salt dome storage cavern (the facility’s fourth cavern), which would increase its maximum total storage capacity to 42 Bcf (32 working gas) from 31.5 Bcf (24 Bcf working gas) by 2012. The project also calls for Egan Hub to build a 16.5-mile looping pipeline and associated facilities.

The proposed facilities would provide Egan Hub with additional capacity needed to meet growing demand and would increase capacity to its interconnects with Texas Gas Transmission and Texas Eastern Transmission.

Egan Hub anticipates that construction of the fourth storage cavern will begin in December 2007, with about 5 to 6 Bcf of gas storage to go into service by August 2009. The full capacity of the cavern would be in service by 2010, according to the company.

Construction of the proposed pipeline and associated facilities is expected to occur between March and August of 2009, for an anticipated in-service date of August 2009, it noted.

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