Falcon Gas Storage Co. Inc. said Tuesday it will reassess its design parameters for Phase 1 of its MoBay Storage Hub project in Alabama after capacity bids submitted during the open season for the facility exceeded the working gas capacity proposed.

Scheduled to be in service during the fourth quarter of 2004, the high-deliverability, multi-cycle natural gas (HDMC) facility’s first phase originally was planned for 20 Bcf of working gas capacity, along with 450 MMcf/d of injection and withdrawal capability (see Daily GPI, March 28).

“The responses we received for Falcon’s MoBay Storage Hub project confirm the need for strategically located sources of swing and peak-day supply that can be accessed by the Florida and Southeast markets,” said Mark Fullerton, project manager for the MoBay Storage Hub. Fullerton noted that MoBay is situated less than two miles from four transmission pipelines serving these areas, as well as supply pipelines and gas processing facilities in the immediate area.

Fullerton said that as a result of the bids received for MoBay, “we are reassessing the Phase I design parameters for the project, which could result in even higher levels of working gas capacity and especially greater injection and withdrawal capabilities, which frankly we did not anticipate at this stage of development. That’s the kind of ‘problem’ we like to have.”

The MoBay Storage Hub plans direct connections to the Transco Mobile Bay Lateral, Gulf South Mobile Bay Lateral, Gulfstream Natural Gas System at Gulfstream’s Station 100, and Florida Gas Transmission Mobile Bay Lateral pipelines.

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