San Diego-based Sempra Energy’s pipeline unit and a subsidiary of Indiana-based ProLiance Energy jointly announced last week that they purchased three salt caverns in Cameron Parish, LA, representing the potential for 10-12 Bcf of natural gas storage capacity, from Richmond, VA-based Dominion. The purchase includes 150 acres of adjacent property carrying the potential for more storage capacity.

Following development plans and regulatory approval, the property will be developed into a gas storage project with Sempra owning 75% and operating the new project and ProLiance taking a 25% stake.

Sempra Pipelines & Storage and ProLiance currently are finalizing construction on another natural gas storage facility in Calcasieu Parish, LA, Liberty Gas Storage LLC. Once developed, the newly acquired property and caverns ultimately would become an extension of Liberty Gas Storage and a significant number of new caverns could be added, said George Liparidis, president of Sempra Pipelines & Storage.

“This area in Louisiana is strategically located to capture natural gas storage opportunities as natural gas infrastructure continues to be added in the Gulf Coast region,” Liparidis noted. Sempra currently is developing the 1.5 Bcf/d Cameron liquefied natural gas (LNG) import terminal in Hackberry, LA, and has plans for another Gulf Coast terminal in Port Arthur, TX. Multiple other LNG projects are being built in the region, creating a significant need for additional pipeline and storage infrastructure.

“This new acquisition gives us the potential to provide gas markets in the Gulf area with even more reliability and an added degree of supply-demand balancing,” said John Talley, president of ProLiance Energy.

The Dominion property and Liberty storage project are located near numerous pipelines, including Sempra’s Cameron and Port Arthur Pipelines, which will deliver regasified LNG from existing and proposed import terminals to major interstate pipelines in the region.

Liberty Gas Storage is located near Sulphur, LA, and is expected to provide 17 Bcf of working gas capacity, starting up by the end of this year, Sempra said in its announcement. Maximum injection and withdrawal rates will be 500 MMcf/d and 1 Bcf/d, respectively.

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