Petal Gas Storage Mulls Possibility of Expanding Natural Gas Storage in Mississippi

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Petal Gas Storage LLC (Houston, Texas), a subsidiary of Enterprise Products Partners LP (NYSE:EPD)(Houston, Texas), is examining the feasibility of expanding its Petal gas storage facility near Petal, Mississippi. Petal Gas completed a successful non-binding open season April 13, 2005, to gauge customer support for the project and is in the process of evaluating the demand and the scope of the expansion project. As it stands now, Petal will expand its cavern-based storage capacity by an additional five billion cubic feet of natural gas.

To support this expansion, Petal will leach an additional salt cavern and will also construct a major addition to its compressor station. The cavern will be sized for an additional five billion cubic feet of storage. The compressor station will be expanded by 20,000 to 30,000 horsepower of engine-driven compressor packages, roughly 7,000 horsepower in size each. No new major pipeline work will be needed, since its existing sixty-mile pipeline from Petal and Enterprise, Mississippi, has FERC approval to increase capacity from 700 million cubic feet per day to 1.3 billion cubic feet per day.

Petal Gas has an existing FERC certificate granting permission to construct the new facilities and will make a production decision on the project some time in late 2005. If Petal Gas goes ahead with the expansion, construction activities would begin in 2006, with a completion time scheduled for the fourth quarter of 2007.

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