FERC Friday gave a favorable environmental review of PetroLogistics Natural Gas Storage LLC’s proposal to build a high-deliverability natural gas salt dome storage cavern and header pipeline at its Bayou Choctaw storage facility in Iberville Parish, LA.

“Approval of the proposed project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment,” the staff of the Federal Energy Regulatory Commission said in the environmental assessment (EA) of the storage project [CP07-427].

The Houston-based storage developer, which filed an application with the Commission in August, proposes to build a FERC-jurisdictional storage cavern capable of storing 9 Bcf, of which 6 Bcf would be working gas (see Daily GPI, Aug. 16, 2007). The facility would have the capability to receive 150-350 MMcf/d for injection and deliver up to 300 MMcf/d.

The project calls for the construction of one 20,000-horsepower electric compressor station on a two-acre site; a 7.3-mile, 24-inch diameter header system; several small interconnecting pipelines and five meter stations/interconnects, as well as the recasing of an existing nonjurisdictional well, the EA said.

The proposed pipeline header would connect the natural gas storage project to several pipelines, including Southern Natural Gas Co., Texas Eastern Transmission LP, Florida Gas Transmission, Bridgeline Pipeline System and CrossTex LIG Pipeline Co.

BG Energy Merchants LLC will be the anchor customer of the project and has executed a precedent agreement for the entire 6 Bcf of firm storage capacity and associated injection and withdrawal rights at the facility, PetroLogistics said.

The company is seeking authorization to provide firm and interruptible natural gas storage and interruptible hub services on behalf of others, as well as charge market-based rates for its services.

PetroLogistics’ parent, PetroLogistics Olefins LLC, currently operates a nonjurisdictional gas storage cavern at the Bayou Choctaw storage site, along with liquids storage facilities. It also owns and operates pipelines to transport the liquids.

©Copyright 2008Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.