Bay Gas Storage Planning to Expand Alabama Natural Gas Storage Facility

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Bay Gas Storage Incorporated (Mobile Alabama), a subsidiary of Mobile Gas Service Corporation (Mobile Alabama), which is owned by EnergySouth Incorporated (NASDAQ:ENSI) (Mobile Alabama), is planning to expand its McIntosh natural gas storage facility by 4-5 Bcf of working gas. Bay Gas is studying the feasibility and seeking a base customer for its proposed number #3 storage cavern. The over $30 million expansion project will also involve either an additional four 4,700 horsepower Caterpillar 3616 internal combustion engines with Ariel compressors, or two of a new type of 8,500 horsepower Caterpillar engines. Bay Gas plans injection and withdrawal rates to be 250mmscfd and 600mmscfd of natural gas respectively.

Bay Gas will include the cost of leaching and engineering of the project in the budget for the company's next fiscal year, which begins in October. Drilling is expected to begin in July 2004 and completion of cavern #3 by November of 2005. Bay Gas completed cavern #2 in November of 2002, which entailed the leaching of a 3.5 Bcf cavern and the installation of three 4,750 horsepower Caterpillar 3616 internal combustion engines with Ariel compressors.