Westport, CT-based NGS Energy LP subsidiary Tres Palacios Gas Storage LLC said construction on its Matagorda County, TX, gas storage project is going according to plan and it has completed mechanical integrity testing (MIT) on the first of three caverns at the southeast Texas site.

Facility construction has been under way since November when the project received approvals from the Federal Energy Regulatory Commission (see Daily GPI, Sept. 21, 2007). The successful MIT is a milestone and is the penultimate step prior to placing the cavern into operation, the company said. The final step, which the company is expected to seek this week, requires FERC authorization to place facilities in service. This final approval, expected by the end of July, would enable Tres Palacios to begin cavern dewatering and commence firm storage operations on Sept. 1.

The Tres Palacios facility would be interconnected with 10 interstate and intrastate pipelines, including: Florida Gas, Transco (near Station 30), Tennessee, NGPL, CTGS (Transco/Tennessee), HPL, TETCO, Enterprise Texas, Enterprise Texas Intrastate and Kinder Morgan Tejas. The project has been authorized to inject up to 1 Bcf/d and withdrawal up to 2.5 Bcf/d and when all three caverns are placed into service will offer 36 Bcf of working capacity.

The company plans to hold a binding open season for firm capacity remaining at the facility beginning on July 28. For information, contact Mark McConnell at (203) 557-1000.

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