Progas Storage and Marketing, based in Abilene, TX (unrelated toCalgary-based ProGas), announced plans last week to develop 40 Bcfof working storage capacity along major interstate pipelines in theIllinois and Appalachian basins over the next four years.

The company said it already has begun construction on one of itssmaller fields, called Stendal, which will be located in PikeCounty, IN. It will serve customers on the Midwestern GasTransmission system in western Indiana, Kentucky and easternIllinois. Progas said it expects the field to have at least 500MMcf of working capacity and 25 MMcf/d of deliverability.

It has three other fields on the way, including the Blackhawkfield, in Vigo County, IN (4.5 Bcf of working capacity and 50MMcf/d of deliverability); the Lisman South field in WebsterCounty, KY (1.8 Bcf with 50 MMcf/d of deliverability); and theRumsey South in McLean County, KY (1.2 Bcf of working capacity and15 MMcf/d). Several other fields are in the early planning stages.

“We’re going to have more news releases coming out of here thanyou can shake a stick at,” said CEO Dan Polk. “We’ve got some bigboys throwing serious money at us right now.” He mentioned severalbig-name energy companies and businessmen who, he said, areplanning to invest in Progas, but he asked that they not be namedin this story.

“We’re going to be horizontal drilling almost all of our fields.We have four fields that we are definitely going to do right nowand three others we’re looking at, including the Marts field, whichis a double field in Kentucky.”

The Stendal field is expected to be completed by this summer.Several marketing firms have expressed interest but none havesigned contracts yet. The company plans to continue withconstruction of the other fields as marketers and endusers requestservice or when the Stendal field is completed. The additionalfields planned will serve customers on Texas Gas, ANR Pipeline andMidwestern Gas Transmission. Several other potential fields couldserve shippers on Trunkline, Panhandle, Columbia and Consumers.

Progas has 10 Bcf of potential working gas capacity leased andcurrently is evaluating the purchase of 21 Bcf of additionalpotential working gas capacity in Indiana, western Kentucky,Illinois, Indiana, West Virginia and Michigan.

Rocco Canonica

©Copyright 2000 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.