FERC Thursday issued a certificate to a Kentucky-based storage developer to construct and operate a 13 Bcf underground natural gas storage facility in Hopkins County, KY.

Orbit Gas Storage Inc. of Henderson, KY, proposes to convert the depleted White Plains Gas Field to gas storage and build an approximately 22-mile pipeline header, compressor station and associated facilities. The Kentucky Energy Hub Project would have an estimated 5 Bcf of working capacity and 8 Bcf of cushion gas, the company said. It further noted that the project would have the capability to deliver and inject gas at a rate of approximately 100 MMcf/d and would interconnect with ANR Pipeline near Rabbit Ridge, KY [CP08-409].

“The proposed project will be located in a competitive market and will serve demand in a region that is experiencing growth in natural gas usage. The proposal will also enhance storage options available to pipelines and their customers and thus will increase competitive alternatives,” the Federal Energy Regulatory Commission (FERC) said in an order.

The Commission approved Orbit’s request to charge market-based rates for firm and interruptible storage services in interstate commerce.

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