Central Valley Gas Storage gets approval for California facilities

Source: Central Valley Gas Storage

Central Valley Gas Storage, a subsidiary of Nicor Inc. (NYSE:GAS), received approval from the California Public Utilities Commission (CPUC) for Central Valley’s Certificate of Public Convenience and Necessity to construct and operate the designed facilities in Colusa County California. 

The Central Valley natural gas storage project is a high deliverability depleted reservoir that will provide multi-turn services tailored to customers’ requirements. The field is strategically situated in northern California and will have an interconnect into Pacific Gas and Electric Company’s (PG&E) gas transmission system. The interconnect point will be considered a PG&E city gate point similar to other independent storage facilities connected to the PG&E system, and will provide access to west coast natural gas and power markets. Nicor Enerchange, L.L.C., a subsidiary of Nicor Inc., will serve as marketing administrator for Central Valley. 

Central Valley’s facilities include an 11 Bcf working gas reservoir, nine directional drilled injection & withdrawal wells, a gas handling facility with 10,650 hp of compression and dehydration facilities, and a 14.7 mile, 24” lateral between the gas handling facilities and PG&E’s transmission system.
 
Central Valley plans to initiate construction activity in late November, 2010 subject to receiving all of the requisite permits. Construction is planned to be completed during the fourth quarter of 2011, with firm storage services commencing on April 1, 2012. 

“We are pleased to have received approval from the California Public Utilities Commission to construct and operate this natural gas storage facility in Colusa County,” said Steve Cittadine, President of Central Valley. “We believe Central Valley’s geographic location and service profile offer an excellent complement to new infrastructure being developed to serve west coast markets and will facilitate more effective use of natural gas as renewable energy mandates take shape in California.”



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