Deepwater field sizes have increased steadily but deepwater operating costs per unit are facing upward pressure as well, according to Ziff Energy’s fifth annual study on deepwater statistics. Ziff found that deepwater average unit operating costs did fall from 1997 to 1999. However since then average unit operating costs have remained nearly flat with a small increase between 2000 and 2003. For the 13 deepwater fields tracked in the latest study for 2003, all but three of the fields had increased unit costs even among fields with increased production volumes, Ziff said. For information about the study, contact Ziff at (888) 736-5780.

Bay Gas Storage said it received requests for twice the proposed 5 Bcf of additional working gas capacity in an open season for an expansion of its McIntosh storage field in Washington County, AL. As a result, it plans to proceed with an expansion that will include the creation of a third natural gas storage cavern, expansion of its injection and withdrawal capacities and addition of new receipt/delivery points to its system with Transcontinental Gas Pipe Line and Gulfstream Natural Gas System. Bay Gas, is a subsidiary of EnergySouth Inc. The McIntosh field currently has 6 Bcf of working gas capacity in two storage caverns with direct interconnects to Florida Gas Transmission, Gulf South Pipeline and Mobile Gas Service. It also has injection and withdrawal capacities of 200 MMcf/d and 610 MMcf/d, respectively. For additional information contact David Hayden at (251) 450-4747 or dhayden@bay-gas.com.

Texas Gas Transmission, a subsidiary of Loews Corp., has filed an application to expand its Midland gas storage facility in western Kentucky. The $20.7 million expansion will include the addition of 6,800 horsepower of new compression and a reconfiguration of pipelines. It is expected to added 82,000 MMBtu/d of deliverability and 8.2 MMDth of seasonal storage space. The project is expected to take about nine months to complete should be in service in late 2005. Two customers have signed agreements for the expansion capacity.

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