Houston-based Falcon Gas Storage Co. Inc. began operations this week at its Worsham-Steed Gas Storage Facility near Dallas, noting that increased production, reduced demand on the Lone Star and TXU Fuels pipeline systems,and maintenance work on the Natural Gas Pipeline of America (NGPL) Bridgeport Lateral has caused a glut of gas in the region.

Falcon previously said that up to 100,000 MMBtu/d of injection capacity would be available at its gas storage facility. Because of a current gas oversupply in Texas, Falcon said storage injections are available for “parking” gas supply inventory and injection capacity is available on a firm basis. Withdrawals are available for deliveries of gas during the 2002/2003 and 2003/2004 winter heating seasons.

A year ago, Falcon purchased the Worsham-Steed Facility from TXU Fuels Co., which ceased gas storage operations there in 1997. It now is redeveloping the facility for high deliverability, multi-cycle gas storage service. The company currently has more than 20 Bcf of working gas storage capacity with in excess of 600,000 Mcf/d of peak-day deliverability as well as six additional high-deliverability, multi-cycle gas storage projects in various stages of development in Texas, New York and the Rocky Mountains.

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