Sawgrass launches non-binding open season for Northeast Louisiana natural gas storage, hub

Source: Sawgrass Storage

Sawgrass Storage, which was formed between subsidiaries of Nicor, Inc. (NYSE:GAS) of Naperville, IL and Samson Contour Energy E&P, LLC of Tulsa, OK, will hold a non-binding open season for storage capacity with firm service projected to commence on June 1, 2012. The open season will begin on October 12, 2010 and extend through November 16, 2010. 

The open season is part of Sawgrass’ ongoing evaluation of a proposed underground natural gas storage and hub development project, strategically located just west of Perryville in Northeast Louisiana. The proposed project initially provides up to 25 Bcf of working gas capacity with the ability to expand to 40 Bcf as dictated by market demand. Firm injection and withdrawal capabilities of 250 MMcfd and 625 MMcfd respectively, provide capabilities to Sawgrass’ customers to cycle their storage inventories up to three and a half (3.5) times per year. 

The high deliverability depleted gas reservoir project located in Lincoln and Union Parishes includes a storage and gas handling facility near Downsville, a dual (high and low pressure) header system with compression in the heart of the Perryville region, and 27 miles of 30 inch pipeline connecting the storage complex to the header system. In June 2010, Sawgrass began the pre-filing process at the Federal Energy Regulatory Commission (Docket PF10-20-000) which reflects bi-directional flow at interconnects with up to ten (10) major pipelines in the Perryville region, including Centerpoint Energy Gas Transmission, Mississippi River Transmission, Gulf South Pipeline, Tennessee Gas Pipeline, Texas Gas Transmission, Southern Natural Gas, ANR Pipeline Company, Texas Eastern Transmission, Gulf Crossing Pipeline, and Midcontinent Express Pipeline. 

“Sawgrass’ geographic location, multiple interconnects and dual header system could serve the growing demand for natural gas storage in multiple regions for marketers, LDC’s, producers and for electric generation,” said Steve Cittadine, Vice President of Sawgrass. “Sawgrass’ header system and hub services would enable its customers to take full advantage of the liquidity available in the Perryville region, and offer highly flexible storage services to markets in the Gulf Coast, Midwest, Northeast, and Southeast regions.”

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