Strategically located high deliverability salt cavern storage to serve growing Delhi Hub
HOUSTON – Icon NGS LLC is holding a 30-day, non-binding open season to solicit expressions of interest for its Tallulah Gas Storage project (TGS) located in northeastern Louisiana approximately 15 miles east of the Delhi Hub and adjacent to the west-to-east pipelines connecting supply to and from the Delhi Hub.
The Open Season will begin on August 24, 2010 and will close on September 23, 2010. The project will be comprised of three high-deliverability, multi-cycle (HDMC) salt caverns with working gas capacity of 8 BCF per cavern for a total of 24 BCF. The project will be designed to inject 900 MMcfd and withdraw up to 1,575 MMcfd of gas when fully operational. The in-service date for the initial 8 BCF cavern is targeted for September, 2013, subject to the normal regulatory approval process, followed by caverns 2 and 3 in September 2014 and September 2015, respectively.
“Icon NGS recognizes the need for storage to serve the growing Delhi Hub and is pleased to be developing this high-deliverability, multi-cycle storage project to benefit the shippers moving gas through the Delhi Hub” stated Andy Lang, president and CEO of Icon NGS.
HDMC storage is a critical component to providing shipper supply and market optionality and for enhancing the efficiency, flexibility and reliability of the pipeline infrastructure being constructed into and out of the Delhi Hub. By 2011, there is expected to be 15 billion cubic feet per day of gas flowing into and out of the Delhi Hub area, and currently there is no existing HDMC storage uniquely positioned to support the Delhi Hub.
The TGS project, located in Madison Parish, Louisiana sits within 3 miles of the pipeline corridor containing Southeast Supply Header (SESH), Mid-Continent Express Pipeline (MEP), Gulf South Pipeline, and Columbia Gulf’s mainline system. TGS will request authorization for bi-directional interconnects with each of these interstate pipelines. TGS will offer a full range of traditional storage and hub services at market based rates subject to approval by the FERC.
In July, TGS received temporary exemption from the FERC to drill two stratigraphic test wells for brine disposal and salt core as part of the project due diligence. Drilling of these wells will commence in August.
Capacity reservation rates will be negotiated with interested shippers and any eligibility for capacity rights will be determined on a non-discriminatory basis.
Additional information including the complete bid package for the Open Season can be obtained at www.tallulahgas.com or by contacting Andy Lang at (713) 403-6464.
Icon NGS LLC is a subsidiary of Quantum NGS Holdings LLC, a partnership between Quantum Energy Partners, an investment firm specializing in the energy industry with over $5.7 billion in capital under management, and Dr. Larry W. Bickle. Icon NGS’ team collectively developed, operated, financed or acquired more than 200 BCF of working gas storage capacity.
Source: Icon NGS LLC