SG Resources Louisiana LLC is conducting an open season through Oct. 10 for firm and secondary firm storage services from a proposed gas storage field it plans to develop in Evangeline Parish, LA. The Pine Prairie Energy Center would be located downstream of the Eunice, Kinder and Rayne pipeline constraint points on the Gulf Coast grid, the company said.

“With supply lagging and demand for natural gas growing, delivery system infrastructure is needed to ensure reliability of supply,” said Mark Cook, principal of SGR Holdings, the parent company of SG Resources Louisiana LLC. “The Pine Prairie Energy Center, a high deliverability gas storage facility with quick cycling ability and multiple pipeline interconnects, will create a market center hub that will add much needed flexibility in the flow of natural gas for both pipelines and end users.

“Additionally, salt cavern high deliverability storage will support the growing market for LNG imports as LNG becomes a more accessible supply source in support of the traditional national gas producing regions.”

SGR said the energy center has been designed to provide a total of 16 Bcf of working gas storage in two caverns, each with 8 Bcf of capacity. Phase One of the construction is scheduled to bring 6 Bcf of storage capacity on line in the second quarter of 2005 with 6 Bcf to be available in the second quarter of 2006. The remaining 4 Bcf would follow.

The company noted that the project will function as a major transportation and storage hub for nine pipelines serving the Gulf Coast, Midwest, Mid Atlantic and Northeast markets, including Transco, Texas Eastern Transmission, ANR, Texas Gas Transmission, Florida Gas Transmission, Tennessee Gas Pipeline, Columbia Gulf Transmission, Bridgeline Gas Distribution and Louisiana Interstate Gas, with additional receipt and delivery points available through the ANR pipeline system.

SGR said it will seek Federal Energy Regulatory Commission (FERC) authorization to construct and operate the Pine Prairie Energy Center, with market based rate treatment under Section 7(c) of the Natural Gas Act.

In addition to Pine Prairie, the Houston-based company also is currently developing the Southern Pines Energy Center, a salt cavern storage facility located in Greene County, MS. SGR already received a Certificate of Public Convenience and Necessity from FERC for Southern Pines.

First announced in January of 2002, Southern Pines will be located on an 80-acre site with direct connections to Transco, Destin Pipeline, Florida Gas Transmission and Gulf South, including the proposed Gulf Pines pipeline system (see NGI, Jan. 21, 2002). When completed, the center will provide 12 Bcf of storage in two caverns and will be capable of supporting natural gas withdrawal rates of up to 1.2 Bcf/d and injection rates of up to 0.6 Bcf/d.

For more information on the Pine Prairie open season, visit www.sgr-holdings.com, or contact SGR’s Mark D. Cook at (713) 502-4930.

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