All of the available storage capacity at Falcon Gas Storage Co. Inc.’s Worsham-Steed and Hill-Lake facilities in North Texas was leased through an open season held last month, the company said Tuesday.

During the open season Falcon offered 6 Bcf of capacity under one- and two-year contracts set to start April 1 (see Daily GPI, Jan. 23).

“We received firm bids for about 20 Bcf from nine companies,” said John Holcomb, vice president of marketing. “The prices we got for this service are as good as we’ve ever done. Clearly gas storage service in North Texas continues to be in high demand despite poor economic conditions nationwide.”

Holcomb attributed the successful open season to continued strong primary storage value drivers — seasonal price spreads and volatility — and decreased costs to store gas, including fuel, taxes and interest rates.

Falcon’s 24-hour intraday load-following and hourly balancing service provides gas-fired power plants with a way to balance daily gas purchases with hourly power dispatch. North Texas is dominated by gas-fired power generation.

Last year Falcon said it received 16 Bcf in interest when it offered 4 Bcf of capacity in an open season at Worsham-Steed and Hill Lake (see Daily GPI, April 1, 2008; Feb. 20, 2008).

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