Unocal to Develop Escondido Natural Gas Storage Reservoir in Texas

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Unocal Midstream & Trade (Sugar Land, Texas), a subsidiary of Unocal Corporation (NYSE:UCL) (El Segundo, California), is planning to develop a new natural gas storage facility near Karnes City, Texas (PEC 01009799). Located 40-miles Southeast of San Antonio in Karnes and Live Oak Counties the Escondido natural gas storage facility will utilize the depleted Atkinson #4250 field reservoir and develop a two-phased storage project.

The initial phase is envisioned to have a capacity of seven billion cubic feet (Bcf) of storage supported by a 7,800 horsepower internal combustion based compressor station and will have an injection & withdrawal rate of 150 mmscfd and 250 mmscfd, respectively providing four complete cycles per year. The second phase will bring total storage capacity to thirteen Bcf and double the injection and withdrawal rates. Bi-directional pipelines would interconnect with Gulfterra Intrastate LP, City Public Service, Houston Pipe Line, and Kinder Morgan Texas Pipeline allowing the planned facility to provide access to gas supplies and markets across Texas.

Unocal expects to make a development decision by August of 2004. All things considered construction could begin on phase I as early as December of 2004, with completion slated for the third quarter of 2005. The second phase would be completed in 2007.

Unocal Midstream & Trade manages Unocal's pipeline, terminal and storage assets, which include interests in more than 8,000 miles of crude oil, natural gas and products pipelines as well as twelve million barrels of crude oil and products storage.