Pine Prairie Energy Center LLC is holding a nonbinding open season for an additional 16 Bcf of gas storage capacity through the end of the month. The company is currently constructing the 24 Bcf first phase of its salt cavern facility near Pine Prairie, LA, about 50 miles from Henry Hub.

Pine Prairie intends to file an application for this Phase II development with the Federal Energy Regulatory Commission later this year and is targeting to have the capacity available beginning in 2010. Pine Prairie is an indirect subsidiary of PAA/Vulcan Gas Storage LLC, in which Plains All American Pipeline LP owns a 50% interest.

In January Vulcan said it bought additional land adjacent to the Pine Prairie site to provide space for expansion (see NGI, Jan. 29).

Phase I development will consist of three storage caverns with working capacity of 8 Bcf per cavern and an extensive pipeline header system. Pine Prairie has completed drilling operations on all three currently permitted cavern wells. Construction of the gas handling and compression facilities, pipeline and interconnects is expected to be completed later this year. A portion of the first cavern is targeted for service in early 2008, with the remaining capacity being placed into service over the next three years. Pine Prairie has reached agreements with a variety of customers for substantially all of the Phase I capacity. The 16 Bcf Phase II development is expected to consist of two additional 8 Bcf caverns.

“PPEC [Pine Prairie] customers can access natural gas markets in the Midwest, Northeast and Southeast regions of the United States through the facility’s interconnections with seven interstate pipeline systems,” said Plains CEO Greg L. Armstrong. “We believe that such market access, coupled with its proximity to the Henry Hub, make PPEC one of the most strategically located natural gas storage facilities in the country. Moreover, we believe our extensive land position surrounding the facility positions us to cost effectively expand the facility over time as market conditions warrant.”

Interested parties should contact Richard Tomaski, (713) 652-3669, or Brad Ledbetter, (713) 652-3671, or visit www.pineprairieenergycenter.com. The open season ends at 5 p.m. CDT on July 31.

©Copyright 2007Intelligence 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.