Sempra Energy Global Enterprises announced Friday that one of its subsidiaries has acquired land and associated rights for the development of a new, salt-cavern gas storage facility in Evangeline Parish, LA, near the Henry Hub from SG Resources Louisiana, LLC.

The project will operate under the name of Pine Prairie Energy Center. It is targeted to begin operations by the fourth quarter of 2005. The development plans provide for three salt caverns with a total working gas capacity of 24 Bcf, with maximum injections of 1.2 Bcf/d and maximum withdrawals of 2.4 Bcf/d.

Due to their high deliverability operating characteristics, salt-cavern storage facilities like Pine Prairie have become key components in supporting the commercial functions of power generators, pipelines, utilities, energy merchants and liquefied natural gas (LNG) regasification terminal operators throughout the United States.

“Pine Prairie Energy Center is strategically located, allowing for interconnections with up to nine key interstate and intrastate pipelines,” said Donald E. Felsinger, group president of Sempra’s Global Enterprises, the umbrella for the company’s growth businesses. “These interconnections will link Pine Prairie directly to Henry Hub, making it a key intersection point of physical and financial markets, and optimally suited to help our customers manage their price and volumetric risk in an increasingly volatile natural gas market.”

Pine Prairie Energy Center will seek authorization from the Federal Energy Regulatory Commission to construct and operate the high-deliverability facility with market-based rates.

Parties who are interested in storage capacity or other services from the facility should contact Laura Luce at (203) 355-5068, lluce@pineprairieenergycenter.com or Richard Tomaski at (203) 355-5840, rtomaski@pineprairieenergycenter.com.

In addition, Sempra Energy Global Enterprises currently is developing Bluewater Gas Storage, a 27 Bcf storage facility in St. Clair, MI, slated to begin commercial operations next month.

SG Resources Louisiana, is a wholly owned subsidiary of SGR Holdings, LLC.

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