FERC on Thursday approved Leader One Energy LLC’s application to convert a production field to a natural gas storage facility to meet existing peak-day and load growth demand for local gas distribution and power generation in the market area along the Front Range in Colorado.

Leader One Energy is seeking to construct and operate a 13 Bcf facility in Adams County, CO, about 37 miles northeast of Denver, using a depleted natural gas field. An estimated 11 Bcf would be working gas, while 2 Bcf would be base gas. The maximum injection capacity would be 150 MMcf/d, and maximum withdrawal capability would be 250 MMcf/d [CP11-33].

Leader One is a Colorado limited liability company whose majority owner is Energy Corporation of America (ECA). ECA, a privately held company, owns and operates about 5,100 wells and 5,000 miles of pipeline in North America.

The project calls for the construction of as many as 14 vertical or horizontal gas storage injection/withdrawal wells; and a 22.4-mile, 24-inch diameter header pipeline system that would provide two interconnections with Colorado Interstate Gas Co. The company said it expects the facility to be completed sometime in 2012.

Based on the results of an open season in September-October 2010, Leader One said it expects the project’s capacity will be fully subscribed before it begins construction.

The Federal Energy Regulatory Commission approved Leader One’s request for market-based rates for firm and interruptible storage and hub services, citing the company’s lack of market power and the fact that its project would be located in a highly competitive market.

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