Gas storage development in the Gulf Coast region has reached a feverish pace, with multiple new projects planned in Mississippi and Louisiana to serve strong power generation and traditional demand growth in the Southeast and other regions. Gulf South Pipeline announced plans Tuesday to join the frenzy with its proposed Magnolia Gas Storage project, which will be located near Napoleonville, LA.

The high deliverability field, which is expected to be in service in October 2003, will have an initial working capacity of 4.1 Bcf, expandable to 6.5 Bcf, and a deliverability of 400,000 Dth/d into the Gulf South pipeline, which interconnects with multiple other lines servicing the Gulf Coast, Southeast, Midwest and Northeast markets.

“The location of this storage capacity complements our existing storage at Bistineau and Jackson, providing increased reliability for customers and opportunities for Gulf South to enhance gas flows across its system,” said Gulf South President Rolf Gafvert. “In addition, making an investment in salt dome storage will provide the market additional opportunities given the high injection and withdrawal levels of these storage caverns.”

At least four other new salt domes are being planned and four more are being expanded in Mississippi and Louisiana. Dominion Transmission is planning the 12 Bcf Hackberry salt dome in Cameron Parish, LA, and AEP, Market Hub Partners and Bridgeline are expanding their existing salt domes in the state. In Mississippi, MHP, NUI and SG Resources are planning three new salt dome storage plants that will add 29 Bcf of working capacity. Several existing high-deliverability facilities also are being expanded, including Petal Gas Storage and Hattiesburg Gas.

For more details on Gulf South’s proposed field, contact Chris Culver at (713) 544-5310.

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