Mississippi

The Black Warrior Storage Project in Mississippi has been slated for an environmental assessment, the FERC said Monday. The project, which would provide up to 24.7 Bcf of working gas capacity, is being developed by Southeast Gas Storage LLC (SGS), an affiliate of El Paso Corp.’s Tennessee Gas Pipeline Co.

FERC approved Caledonia Energy Partners LLC’s (CEP) proposal to expand to 16.9 Bcf its 11.7 Bcf storage facility located in Monroe and Lowndes counties in northeast Mississippi. The expansion is expected to increase maximum daily withdrawal capability to 477 MMcf/d from the current 330 MMcf/d.

Enstor Inc., a unit of Spain’s Iberdrola SA, is buying Caledonia Energy Partners LLC (CEP), owner of the Caledonia Gas Storage Field in northeastern Mississippi, from Tenaska Power Fund LP (TPF) and other owners, the companies said Monday.

ANR began unplanned engine repairs Tuesday at Sardis Compressor Station in Mississippi that are expected to continue through Friday. The work is reducing total Southeast Mainline capacity by 300 MMcf/d, leaving 1,100 MMcf/d available. Based on current nominations, it is anticipated that the reduction may result in the curtailment of Interruptible and Firm Secondary services, ANR said.

FERC Monday gave the environmental go-ahead for Copiah Storage LLC’s amended proposal to significantly expand the capacity of its proposed storage facility in southwestern Mississippi.

Leaf River Energy Center LLC has filed an application at FERC to build a salt cavern gas storage facility in south-central Mississippi, according to its parent company NGS Energy Fund LP.

An estimated 28.5 million acres of land in federal waters offshore Louisiana, Mississippi and Alabama will be offered for lease in October as the Minerals Management Service (MMS) holds the first Central Gulf of Mexico lease sale in its 2007-2012 Outer Continental Shelf (OCS) leasing program.

BP Exploration & Production Inc. announced a hydrocarbon discovery in an exploration well that tested its Isabela prospect in the deepwater Gulf of Mexico (GOM). The well is located on Mississippi Canyon Block 562 in 6,500 feet of water, about 150 miles southeast of New Orleans. Isabela was drilled to a total depth of 19,100 feet into Miocene era sands. “Isabela is an excellent addition to our portfolio of discoveries in the Gulf of Mexico,” said Dave Rainey, BP’s Vice President of GOM Exploration. “It will likely be tied back to our Na Kika production platform, helping to maximize the value of that infrastructure.” The well is operated by BP with a 67% working interest and is co-owned by Noble Energy Inc. with a 33% working interest. The lease was acquired at in March 1998.

FERC staff Friday gave a final environmental nod to Gulf South Pipeline Co. LP’s proposal to build its East Texas-to-Mississippi Expansion Project that would provide significant takeaway capacity for producers in the prolific Barnett Shale and Bossier Sands trends of East Texas. The favorable action puts Gulf South one step away from receiving a certificate.