Salt

PetroLogistics Natural Gas Storage LLC has filed an application at FERC seeking to build a high-deliverability natural gas salt dome storage cavern and header pipeline at its Bayou Choctaw storage facility in Iberville Parish, LA.

Drilling of a fourth high-deliverability salt dome gas storage cavern will begin in September at EnergySouth Inc.’s Bay Gas Storage facility, the company said Friday, with the cavern expected to be in service in fall 2009.

Petal Gas Storage LLC is holding a nonbinding open season for 5 Bcf of firm capacity to be created through construction of a new salt cavern at its Petal, MS, facility. An in-service date is planned for the second quarter of 2010.

Petal Gas Storage LLC is holding a nonbinding open season for 5 Bcf of firm capacity to be created through construction of a new salt cavern at its Petal, MS, facility. An in-service date is planned for the second quarter of 2010.

BP Energy Co.’s ability to market natural gas in the western United States has improved with the completion of its acquisition of Salt Lake City-based marketer Wasatch Energy LLC. The acquisition was announced in December (see NGI, Dec. 25, 2006). The deal, for an undisclosed amount, gives BP Energy all of Wasatch’s natural gas business and assets, including commercial and industrial sales contracts and producer services contracts. Wasatch’s 42 employees also were offered the opportunity to transfer to BP Energy. Wasatch has a portfolio of 350,000 MMBtu/d of gas purchase, transportation and sales activity across 10 western states that serve about 500 commercial and industrial customers and 100 producers. Its sales offices are located in New Mexico, Colorado, Washington, and California.

BP Energy Co.’s ability to market natural gas in the western United States has improved with the completion of its acquisition of Salt Lake City-based marketer Wasatch Energy LLC. The acquisition was announced in December (see Daily GPI, Dec. 22, 2006).

PetroLogistics Natural Gas Storage LLC is holding an open season through April 11 for 1 Bcf of firm gas storage service at its proposed 6 Bcf salt dome storage cavern, which will be located at the Choctaw storage facility in Iberville Parish, LA. The open season will offer contracts for up to 20 years. BG Energy Merchants LLC is the anchor customer of the project, and it has executed a precedent agreement under which it will contract for a minimum of 5 Bcf of firm storage capacity and associated injection and withdrawal rights, according to PetroLogistics. BG has agreed to purchase any firm capacity remaining after the open season is completed. PetroLogistics intends to file for a facility certificate with the Federal Energy Regulatory Commission following the open season. Certificate authority is expected by Nov. 1, and facilities could be in service by Sept. 1, 2008, the company said. The facility and header pipeline will be capable of receiving and delivering gas from and to Southern Natural Gas Co., Texas Eastern Transmission Corp., Florida Gas Transmission Co., Bridgeline Pipeline System and CrossTex LIG Pipeline Co. The facility will be capable of storing up to 6 Bcf, receiving 150-375 MMBtu/d for injection and delivering up to 300 MMBtu/d. To review the offer sheet and bid information, click here. For more information, contact Nathan Ticatch, PetroLogistics Natural Gas Storage LLC, 909 Fannin, Suite 2630, Houston, TX, 77010; or via email at ticatch@petrologistics.com.

PetroLogistics Natural Gas Storage LLC will launch an open season Wednesday for 1 Bcf of firm gas storage service at its proposed 6 Bcf salt dome storage cavern, which will be located at the Choctaw storage facility in Iberville Parish, LA. The open season, which will conclude April 11, will offer contracts for up to 20 years.

FERC last Thursday granted Mississippi Hub LLC a certificate to build a 17.34 Bcf salt dome natural gas storage facility and an associated pipeline in South-Central Mississippi. The agency also approved the company’s request to charge market-based rates for storage services.