Blue Sky Gas Storage LLC has filed an application at FERC seeking to build a natural gas storage project in Logan County, CO, with proposed interconnects with the Rockies Express, Trailblazer and Kinder Morgan Interstate pipelines and access to Cheyenne Hub by backhaul on Trailblazer.

The Blue Sky storage facility, which would be located north of Sterling, CO, would have working gas capacity of 4.4 Bcf, with the potential for further expansion in the future subject to approval by the Federal Energy Regulatory Commission and market demand.

“We anticipate our customers will be a variety of interstate shippers from the [Rockies] Front Range to the Midwest interested in managing weekly or monthly price fluctuations, using our storage services to manage their pipeline balancing, and for seasonal price arbitrage opportunities,” said Paul Jornayvaz, managing partner of Houston-based Blue Sky, an affiliate of Linear Energy Management LP, a privately owned midstream pipeline company.

The central Rockies currently lacks sufficient storage capacity and the Blue Sky project will be an important addition to the market, he said.

In addition to filing its application at FERC, Blue Sky said it is conducting a nonbinding open season through June 19. A bid sheet and further information can be found at

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