SG Resources Mississippi Nearing Construction of Natural Gas Salt Dome Storage in Mississippi

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). SG Resources Mississippi, L.L.C. (Houston, Texas) is planning to begin leaching two salt caverns in the late fourth quarter of 2002 and begin construction of the surface facilities in the second quarter of 2003 in Greene County, Mississippi.

The $120 million project referred to, as the "Southern Pines Energy Center" will utilize two underground salt caverns and have a total storage capacity of 16 bcf of natural gas. The project will be completed in two phases with 8 bcf of storage coming into service in the fourth quarter of 2004 and a further 8 bcf to be available in late 2005. The associated compressor station will be comprised of four 8,000 horsepower internal combustion engines with space set aside for a further two units of the same size. The proposed withdrawal and injection rates will be 1.6 bcf/d and 800 mmscfd respectively. The project will incorporate direct bi-directional lateral interconnections to the Williams/Transco system, Destin Pipeline and the Florida Gas Transmission system through a dual 24" pipeline system.

Mustang Engineering Incorporated (Houston, Texas) was awarded the engineering contract for the storage facility. A preliminary FERC decision is expected in late November of 2002.

SG Resources Mississippi, L.L.C. is a wholly owned subsidiary or SGR Holdings, L.L.C. (Houston, Texas). SGR Holdings, L.L.C. main focus of business is the development, ownership and operation of underground salt cavern natural gas storage facilities. SGR Holdings is currently developing three salt cavern storage projects in the US and its senior management gained their experience from leading the Market Hub Partners Group from its creation in 1994.

Industrialinfo.com has been tracking and reporting on the progress of the Southern Pines Energy Center since January of 2002.