Houston-based Enstor Inc., a unit of Spain’s Iberdrola SA, will begin accepting binding bids for firm storage capacity at its Caledonia Gas Storage Field in northeast Mississippi, the company said Wednesday. Bidding will begin Aug. 6 and close at 5 p.m. CDT on Aug. 20.
Last week FERC approved Caledonia Energy Partners LLC’s (CEP) proposal to expand to 16.9 Bcf its 11.7 Bcf storage facility in Lowndes County, MS (see Daily GPI, July 18). The facility directly connects with Tennessee Gas Pipeline’s 500 Leg, which delivers 2 Bcf/d to markets in the Northeast, Southeast and Ohio Valley regions.
Caledonia proposed constructing and operating facilities in two phases in order to expand the Caledonia Field storage facility. In the first phase the company will develop the County Line Field, a depleted reservoir approximately two miles northeast of the Caledonia Field, as an additional field capable of storing approximately 1.6 Bcf of working gas. Caledonia plans to construct one injection and withdrawal well with two horizontal lateral sections and about 1.8 miles of eight-inch diameter pipeline to connect the County Line Field to the Caledonia Field. In the second phase, Caledonia plans to install 10,000 hp of compression in a new compressor building within the existing compression station at the Caledonia Field.
Caledonia went into service last year (see Daily GPI, May 2, 2007). At start-up the facility had an initial maximum withdrawal capacity of 330 MMcf/d and a maximum injection capability of 260 MMcf/d. The Federal Energy Regulatory Commission gave environmental clearance for CEP to convert what was then a nearly depleted natural gas reservoir into the Caledonia storage facility more than three years ago (see Daily GPI, Feb. 11, 2005).
Interested parties should contact Tom Van Matre at (281) 374-3054 or e-mail firstname.lastname@example.org. Information about the open season will be available at www.enstorinc.com no later than Aug. 6.
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