SGR Holdings Exploring the Possibility of Constructing a Natural Gas Storage Facility on the Gulf Coast

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). SGR Holdings, LLC (Houston Texas) is in the early phase of an economic evaluation to construct a natural gas storage facility near Eunice, Louisiana referred to as the Louisiana Energy Project. The $120+ million storage project will utilize two salt caverns and have a combined storage capacity of 12 bcf when completed in the last quarter of 2005.

SGR intends to hold an "Open Season" for firm storage service and file its section C7 documents with the FERC by the end of 2002. The surface facilities will include a compressor station ranging up to 32,000 horsepower and based on internal combustion engines with reciprocating compressors and several dual 24" diameter laterals to interconnect with local natural gas transmission mainlines. SGR intends to begin leaching the twin caverns in the spring of 2004 and begin construction of the surface facilities in late 2004 or early 2005.

SGR Holdings, LLC's 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.

IIR has been tracking the early progress of this project since September of 2002.

Industrialinfo.com has developed a comprehensive U.S. Natural Gas Pipeline & Compressor Station Database detailing over 1,300 compressor stations, including the make & model of the prime driver & horsepower of each unit, date of installation, type of compressor, and station contact details for each station.