The Keystone facility, located in the Permian Basin near the Waha hub, is conducting a non-binding open season through Sept. 1 to secure interest in firm natural gas storage services for 1 Bcf of capacity, according to Unocal Midstream & Trade (UMT). Its fourth cavern is expected to be in service by the end of this year.

Keystone also is seeking interest for firm gas storage services from three proposed caverns (6, 7 and 8), which also would offer 1 Bcf of capacity each. Keystone has applied to the Texas Railroad Commission for permits to develop these three caverns. At its current capacity of 3 Bcf, Keystone’s deliverability capacity is 200 MMcf/d, and its injection capacity is 100 MMcf/d. When the fourth cavern is completed, Keystone will have 4 Bcf of capacity in service. A fifth cavern also is being mined, and it is expected to be in service by early 2006.

The facility, which has been in service since September 2002, connects to the El Paso, Transwestern and Northern Natural Gas pipelines. In January, Keystone requested and received approval from the Federal Energy Regulatory Commission to provide gas storage services for interstate customers for up to 5 Bcf of gas at market-based rates. FERC approval and Keystone’s pipeline connections now allow it to serve customers in Texas as well as the midwestern and western interstate markets.

“We continue to be pleased with the market response to the Keystone facility,” said Jim Avioli, general manager of UMT Storage. “We have sold out firm capacity in our first four caverns. The results of this open season will help us size the market demand for additional capacity and allow us to build sufficient caverns at Keystone to meet those needs.”

To learn more about Keystone’s open season process or to obtain an information package, contact Chris Hoekenga at (281) 287-7512 (chris.hoekenga@unocal.com) or Anne Fiedler at (281)287-5243 (afiedler@unocal.com).

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