Merchant Energy Holdings LLC‘s East Cheyenne Gas Storage LLC began pad gas injections at its facility in northeastern Colorado. The independent natural gas storage facility is interconnected with Kinder Morgan‘s (KM) Trailblazer Pipeline in Logan County, CO with plans to interconnect to KM’s Rockies Express Pipeline in the future. East Cheyenne’s backers tout it as the first operational independent gas storage facility in the Rocky Mountain region, and through its interconnect with Trailblazer they contend it will be able to serve customers in Colorado’s Front Range along with shippers on other pipelines in the area. Initial withdrawal capabilities are scheduled for the first quarter. At an industry conference in Los Angeles last month, Merchant Energy Holdings CEO Andy Lang said the project will eventually have 14-20 Bcf of total capacity by 2015 (see Daily GPI, Oct. 14).

The recently unveiled Propane Gas Act (HR 2014 and S 1120) is intended to provide economic stimulus and energy security benefits, according to a study released by the National Propane Gas Association (NPGA). A boost in propane vehicle sales and use created by tax credits could generate an increase in economic activity that peaks at between $4 billion and $5.7 billion annually in 2016, the study said. The association said that translates to 30,000-42,000 jobs created by 2016. NPGA said the legislation “would extend for five years federal alternative fuel tax credits for propane used as a motor fuel, propane autogas vehicles and propane autogas refueling equipment.” Consulting firm ICF International prepared the study and review of the proposed legislation for NPGA.

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