The gas storage portion of East Cheyenne Gas Storage (ECGS) has begun commercial operations in northeast Colorado, according to Houston-based developer Merchant Energy Holdings LLC. The withdrawal capability of the 18.9 Bcf facility is scheduled to be in place during the first quarter.

With approvals from FERC to place certain facilities in operation, ECGS said Tuesday it was beginning commercial injections as the first independent natural gas storage operation in the Rocky Mountain region. It is certified by the Federal Energy Regulatory Commission for the 18.9 Bcf of working capacity.

The company has another storage project in Louisiana (see Daily GPI, Oct. 14).

ECGS is focused on high-deliverability, multi-cycle gas storage capacity. President Andy Lang said he is pleased with the results of the facility in Logan County, CO, noting that “additional injection/withdrawal wells are being brought online to support the development of the working gas capacity in line with our [FERC] certified authority.”

The new storage facility is intended to serve “growing gas demand” for power generation and seasonal load growth along Colorado’s Front Range. There is new gas-fired electric generation capacity being developed in the area in support of the Colorado Clean Air and Clean Jobs state law passed last year.

ECGS is interconnected with Kinder Morgan’s Trailblazer Pipeline in Logan County and is authorized to connect with the Rockies Express pipeline at the same location, Lang said. ECGS plans to provide storage and hub service options to shippers using the Cheyenne Hub, in addition to serving Front Range customers and shippers moving gas to markets off the systems of Natural Gas Pipeline Co. and Northern Natural Gas Co.

©Copyright 2011Intelligence 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.