Peregrine Midstream Partners LLC unit Ryckman Creek Resources LLC was cleared to use FERC’s prefiling review process for its proposed Ryckman Creek Gas Storage Project in Uinta County, WY, near the Opal Hub.

The project involves converting an existing partially depleted oil and gas field, known as the Ryckman Creek Nugget Unit, into a gas storage field. The first phase is being designed for 25 Bcf working capacity of high-deliverability, multi-cycle (HDMC) storage. Phase I will include maximum injections exceeding 200 MMcf/d and maximum withdrawals of approximately 360 MMcf/d.

The project will be subject to regulation as an interstate gas storage facility under the Natural Gas Act. Ryckman Creek intends to file an application for certificates of public convenience and necessity at the Federal Energy Regulatory Commission in the fall for the project, which will charge market-based rates.

“Ryckman Creek is ideally located near the Opal Hub where it can serve a large number of producers, shippers and markets,” said Peregrine’s Chuck Sawyer, vice president of project development. “The project’s natural gas storage services will meet existing and anticipated demand for firm, peak day, load following, balancing and seasonal storage services to natural gas markets throughout the Midwest, Rocky Mountains and western U.S. This will be the largest independently owned gas storage project serving the Opal Hub area.”

Ryckman Creek plans to conduct a nonbinding open season in the fall. Construction is expected to start in spring 2011, with an in-service date in April 2012.

Houston-based Peregrine is a privately held company pursuing development and acquisition opportunities in the midstream energy sector in addition to providing midstream asset management and advisory services. It was founded by four of the founders of Falcon Gas Storage Co. (see Daily GPI, Feb. 5, 2009).

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