Increasing its ownership to 100%, Houston-based Falcon Gas Storage Co. Inc. said Wednesday that it has acquired the remaining 50% interest in Greyhawk Gas Storage Co. LLC, owned by a subsidiary of Nova Scotia-based Emera Inc. Terms of the transaction were not disclosed.
Formed by Emera and Houston-based Falcon in 2001 (see Daily GPI, Oct. 2, 2001), Greyhawk’s mission was to acquire, develop, own and operate high-deliverability, multi-cycle (HDMC) natural gas storage facilities in the Northeastern United States. Through Wyckoff Gas Storage Co. LLC, a wholly owned subsidiary, Greyhawk owns the Wyckoff Gas Storage Project in Steuben County, NY.
“We can now move forward expeditiously with developing Wyckoff into a HDMC gas storage facility that will provide much needed peak-day deliverability in the Northeast and Mid-Atlantic markets,” said John Hopper, Falcon’s CEO. “Wyckoff’s strategic location makes the project ideally suited to serve both the Northeast and Mid-Atlantic gas and power markets, with direct access on the Tennessee, Dominion, National Fuel Gas and Columbia/Millennium interstate pipeline systems.”
The Wyckoff project received a green light from the Federal Energy Regulatory Commission in October 2003 for development into a HDMC gas storage facility. Falcon said Wyckoff’s FERC-certificated Phase I design working gas capacity is 6 Bcf, with a peak design withdrawal capacity of 400 MMcf/d and a peak design injection capacity of 250 MMcf/d. At a later date, the facility can be expanded to 10 Bcf of working gas capacity with over 750 MMcf/d of peak withdrawal capacity and 400 MMcf/d of maximum injection capacity.
“We currently are negotiating precedent storage agreements with prospective Wyckoff storage customers, as well as discussing firm transportation agreements with interstate pipelines in the immediate area that will allow Wyckoff to provide both firm and interruptible storage and hubbing services between the Wyckoff facility and the strategic Leidy and Independence Market Hubs,” said Hopper. “At Leidy, we would be able to provide service to customers on the Texas Eastern and Transco pipeline systems as well. We anticipate an in-service date by the third quarter of 2005.”
In addition to owning Greyhawk, Falcon also provides gas storage in Texas with more than 20 Bcf of working gas storage capacity and in excess of 500,000 MMBtu/d of peak-day deliverability capability serving the Dallas/Ft. Worth and North Texas markets.
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