Bay Gas Storage is holding a non-binding open season through July 9 to test market interest in adding a third salt cavern to its McIntosh storage field 40 miles north of Mobile, AL. The EnergySouth subsidiary said it is offering up to 5 Bcf of additional working gas capacity and based on the results of the open season will evaluate whether to expand the field or add new interconnects with interstate pipelines. The McIntosh field has the capability of adding 10 additional salt caverns. It currently has two gas storage caverns with direct interconnects to Florida Gas Transmission, Gulf South Pipeline and Mobile Gas Service. The two caverns have a combined working gas capacity of 6 Bcf with injection and withdrawal capacities of 200 MMcf/d and 610 MMcf/d, respectively, all of which is fully subscribed. A third cavern would expand working gas capacity and add injection and withdrawal capabilities, as well as possibly new receipt/delivery points with Transcontinental Gas Pipe Line and Gulfstream Natural Gas. The expected completion date for an expansion would be early 2007. For details contact David Hayden at (251) 478-5817 or dhayden@bay-gas.com or visit www.bay-gas.com.
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Bay Gas Tests Market for More Storage Capacity in Alabama
Bay Gas Storage is holding a non-binding open season through July 9 to test market interest in adding a third salt cavern to its McIntosh storage field forty miles north of Mobile, AL.
Industry Briefs
Vancouver-based Valkyries Petroleum Corp. said initial test results for its Canales No. 1 well drilled on the Tiara prospect in South Texas is flowing 2.7 MMcf/d and 70 bbl of condensate a day. The well spudded in mid-April and reached final depth of 9,100 feet in early May. The well will be tied into nearby production facilities, and a full field appraisal program will be carried out over the next few months. Valkyries holds a 20.63% working interest in the Canales No. 1 well. Preparations are under way to drill an offset well in which the company will have a 37.5% working interest. Valkyries also reported that a private placement announced in March has closed. The placement raised gross proceeds of C$2.25 million through the sale of one million units at C$2.25/unit with each unit consisting of one common share of Valkyries and one-half of a share-purchase warrant. Proceeds will be used for general working capital purposes.
Falcon’s Open Season to Test Interest in Expanded Texas Storage Facility
Houston-based Falcon Gas Storage Co. Inc. will hold an open season Monday through May 28 for expanded capacity from its Hill-Lake Gas Storage Facility. The facility in Eastland County, TX serves the Dallas-Fort Worth area, as well as Central, West and East Texas.
Falcon’s Open Season to Test Interest in Expanded Texas Storage Facility
Houston-based Falcon Gas Storage Co. Inc. will hold an open season Monday through May 28 for expanded capacity from its Hill-Lake Gas Storage Facility. The facility in Eastland County, TX serves the Dallas-Fort Worth area, as well as Central, West and East Texas.
After Penetrating $6, Futures End Week on Four-Day Backslide
Following its test of the $6 resistance on Monday, May natural gas futures finished the week on a four-day slide lower, closing 12.4 cents down on Friday at $5.610. Some analysts looked to the country’s current weather pattern, as well as the storage situation, for answers, taking into account Thursday’s slightly bearish EIA storage report.
Futures Test Support as Traders Assess the Storage Situation
Adding to losses etched in Thursday’s abbreviated session, the natural gas futures market continued lower Friday as buyers appeared content to wait for sub-$5.00 prices before re-entering the market.
SGR Tests Market for Storage Header Extension
SGR Holdings LLC said it is holding an open season from Nov. 5 to Dec. 5 to test market interest in extending the Southern Pines Energy Center pipeline/storage header north to interconnect directly with Southern Natural Gas Co. and Tennessee Gas Pipeline in Mississippi. The 12 Bcf Southern Pines salt dome gas storage field, which already has a FERC certificate, is expected to begin providing high-deliverability storage services in 2005.
SGR Tests Market for Storage Header Extension
SGR Holdings LLC said it is holding an open season from Nov. 5 to Dec. 5 to test market interest in extending the Southern Pines Energy Center pipeline/storage header north to interconnect directly with Southern Natural Gas Co. and Tennessee Gas Pipeline in Mississippi. The 12 Bcf Southern Pines salt dome gas storage field, which already has a FERC certificate, is expected to begin providing high-deliverability storage services in 2005.
FERC Monitors Price Index Compliance with Standards, Liquidity
In what appear to be test cases, the Federal Energy Regulatory Commission has singled out two published natural gas price indexes that were cited by interstate gas pipelines in new tariff filings to be monitored to determine whether they are in compliance with the agency’s new mandated standards for price reporting and reflect sufficient liquidity at referenced pipeline locations.
