Falcon Gas Storage Awards Contracts for $250 Million MoBay Natural Gas Storage Project

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Researched by Industrial Info Resources (Sugar Land, Texas). Falcon Gas Storage Company (Houston, Texas) has awarded Engineering Corporation of Louisiana Incorporated (Lafayette, Louisiana) the engineering and project management contract for its planned $250 million MoBay natural gas storage facility to be located in Mobile County, Alabama. The proposed MoBay natural gas project is a high-delivery multi-cycle (HDMC) depleted reservoir based project with a phase I storage capacity of 50 billion cubic feet (Bcf) of natural gas. The project has a proposed maximum injection and withdrawal rate of 1 billion cubic feet per day (Bcf/d) of natural gas.

The MoBay project will initially connect with 4 pipelines through the construction of multiple bi-directional natural gas pipeline laterals measuring 36-inch in diameter each. The laterals and the main storage trunk will measure 20.3 miles in length. MoBay will connect with the Gulfstream Natural Gas System, Transco Pipeline (Zone 4A), Florida Gas transmission (Zone 3), and GulfSouth Pipeline (Zone 4).

In support of the project, Falcon will construct a central compressor station adjacent to Gulfstream’s existing compressor station 410 near Coden, Alabama. Falcon will install eight new 4,735 horsepower Caterpillar 3616 engines with Ariel compressors at the new compressor station. Other equipment to be installed at the new compressor station will include four trains of glycol dehydrators for water removal from the gas produced from the offshore gas storage field, a 20 million Btu/hr thermal oxidizer, and a 3,050 horsepower 4SLB gas-fired RIC engine to power a back-up generator. Each glycol dehydration train will have a 2.5 million Btu/hr re-boiler associated with it.

Falcon Gas Storage expects to begin construction on the MoBay gas storage project in October of 2007, with a completion and in-service date set for April 1, 2009. Once completed the new facility will be operated by Falcon’s wholly owned subsidiary MoBay Storage Hub LLC.

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