Houston-based SGR Holdings LLC is planning a new 16 Bcf salt cavern natural gas storage facility in Greene County, MS, and has plans for two more high deliverability storage facilities in the Gulf Coast region.

The Southern Pines Energy Center will be located on an 80-acre site in Mississippi with direct connections to Williams/Transco, Destin Pipeline, Florida Gas Transmission and Gulf South, including the proposed Gulf Pines pipeline system.

SGR, which is led by salt cavern gas storage experts who formerly managed Market Hub Partners, has announced that its subsidiary SG Resources Mississippi LLC has completed definitive engineering, land acquisition and the purchase of pipeline rights-of-way for the development of the Southern Pines project. The high-deliverability storage facility has been designed to provide 16 Bcf of storage in two caverns, each with 8 Bcf of capacity. The also will accommodate three additional caverns to support future growth in demand.

The project is ideally located to serve as a transportation and storage hub for nine major pipelines. In addition to the direct interconnects, indirect access will be readily available to Texas Eastern’s Koskiusko exchange, Tennessee Gas, Sonat, and the Gulfstream pipeline to Florida, which is currently under construction.

SGR will be conducting an open season for storage capacity and commencing the project permitting process during this first quarter of 2002. The Southern Pines facility is expected to be operational by the end of the fourth quarter of 2003.

SGR also is currently developing two other salt cavern storage facilities in the Gulf Coast region. For further information about the Southern Pines project, contact A.J. Clark at (713) 914-8188.

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