Non-binding open season for Tallulah gas storage project in NE Louisiana
Icon NGS, LLC is holding a 30-day, non-binding open season to solicit expressions of interest for its Tallulah gas storage (TGS)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 began 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. Tallulah Gas Storage, LLC will file for its Section 7(c) certificate authority with the FERC on or about August 31, 2010.
“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” said Andy Lang, CEO of Icon NGS. “The Tallulah project is another step in our commitment to develop storage assets to serve the Delhi market. Our technical due diligence and work with the stakeholders in the Tallulah area coupled with the project’s strategic location adjacent to the East-West corridor give us confidence that this project will move forward on a timely schedule.”
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.
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