FERC last Tuesday granted Gulf South Pipeline Co. LP a limited-term certificate to expand the overall capacity of its Jackson Gas Storage Field in central Mississippi to provide needed additional deliverability on its system for the winter heating season.

The authorization, which would be in effect from Nov. 15 of this year through Oct. 31, 2005, would allow Jackson Storage to increase the overall storage capacity of its facility by 2.4 Bcf to offset the force majeure loss the company is suffering at the Magnolia Storage Field, which Gulf South leases in southern Louisiana. Magnolia Storage has been subject to a force majeure condition since December 2003.

Gulf South proposes to inject an additional 2.4 Bcf of gas into Jackson Storage for operational purposes by using its existing eight injection/withdrawal wells and pipeline facilities. The 2.4 Bcf of natural gas would be transferred from Gulf South’s Bistineau Storage Facility in northern Louisiana.

“Staff analysis confirms that the transfer of 2.4 Bcf of gas from Bistineau Storage to Jackson Storage will not negatively impact the operation of Bistineau Storage,” the FERC order said [CP04-425]. “Also, staff analysis confirms that increasing the total overall storage capacity of Jackson Storage by injecting the additional 2.4 Bcf of gas into the Selma Chalk Formation, thus lowering the gas-water contact, will increase the amount of operational gas available on the east side of the storage system and extend the withdrawal capability at Jackson Storage by approximately 10 days.”

Moreover, operating Jackson Storage at an increased level for a limited term will permit Gulf South to gather additional data that may prove useful in its pending application, where it is seeking authorization to drill up to five new wells to inject 2.4 Bcf of gas at Jackson Storage for system operations in order to make up for the loss of capacity at Magnolia Storage, the order said.

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