FERC Friday issued a favorable environmental assessment (EA) for Cadeville Gas Storage LLC’s proposal to build a high-deliverability natural gas storage facility in northern Louisiana.

“Approval of the proposed project, with appropriate mitigating measures, would not constitute a major federal actions significantly affecting the quality of the human environment,” said the staff of the Federal Energy Regulatory Commission (FERC) in the EA on the Cadeville Gas Storage project [CP10-16].

The facility, which would be located in Ouachita Parish about 10 miles southwest of Monroe, LA, is being designed to accommodate peak withdrawals and injections of 420 MMcf/d, and will have 16.5 Bcf of working gas capacity.

The storage facility will have the ability to interconnect to various pipelines in north Louisiana providing access to the Perryville Hub, according to Cadeville Gas Storage, which is owned by Cardinal Gas Storage Partners. The proposed interconnections will be with CenterPoint Energy Gas Transmission (CEGT), Tennessee Gas Pipeline and Gulf South Pipeline near Delhi, LA.

Assuming it receives regulatory approval, commercial storage services are scheduled to begin in early 2012, the company said.

Cadeville proposes to drill eight horizontal wells, install small pipeline facilities and a compressor station with 23,765 hp (see Daily GPI, Nov. 9, 2009).

“This project will support further development of domestic gas production in the Gulf Coast and Midcontinent regions, as well as the addition of new LNG [liquefied natural gas] projects in the United States, and the development of markets in the eastern United States,” the developer said.

In June 2008 Cardinal acquired the Cadeville project from CEGT, an interstate gas pipeline subsidiary of CenterPoint Energy Inc., for an undisclosed price (see Daily GPI, June 20, 2008).

Cardinal is a joint venture of Martin Resource Management Corp. and Energy Capital Partners LP. Cardinal also owns Arcadia Gas Storage LLC and Perryville Gas Storage LLC. Through Arcadia, Cardinal is developing a 13.8 Bcf salt cavern facility near Arcadia, LA.

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