Arizona Natural Gas Storage Public Open House
Arizona Natural Gas Storage LLC (ANGS) is proposing an interstate natural gas storage facility to be located in Pinal County near the City of Eloy to provide high-deliverability, underground natural gas storage capacity to markets throughout Arizona and potentially California to meet a well documented need for additional natural gas storage capacity and deliverability in Arizona and the Western United States.
The proposed Project includes a dual pipeline header to connect the storage facility with two existing interstate natural gas pipelines near Randolph, Arizona and lateral pipelines to gas-fired electric generating facilities. The Project would incorporate facilities to be used for the storage of natural gas transported in interstate commerce, as well as facilities to be used to create underground storage caverns and to receive, compress, withdraw, dehydrate, and redeliver natural gas. The Project Facilities would be subject to the jurisdiction of the Federal Energy Regulatory Commission (FERC) under the Natural Gas Act of 1938, as amended (NGA). ANGS is seeking a certificate of public convenience and necessity from FERC under Section 7(c) of the NGA authorizing ANGS to construct the Project and to use the Project Facilities to offer natural gas storage services in interstate commerce.
ANGS is inviting the public to an Open House to present the proposed Project.
Wednesday, March 3, 2010
5:00 – 7:00 PM
Coolidge-Florence Elks Lodge # 2350
2241 North Attaway Road
Coolidge, Arizona 85228
Open Season to Begin Monday for Large Arizona Storage Project
Arizona Natural Gas Storage, a subsidiary of NGS Energy, said it will launch a non-binding open season beginning February 1 for firm storage service at a proposed salt-cavern facility to be developed some 35 miles south of Phoenix.
The ANGS project, to be sited in the Picacho Basin in Pinal County, would house up to eight salt caverns with a maximum 20 Bcf of working capacity, with market-based rates. The company said the Federal Energy Regulatory Commission accepted its pre-filing application last month; the facility is expected to come online in the summer of 2012.
The project would include a 9.5-mile lateral connecting it to El Paso Natural Gas and Transwestern Pipeline, as well as connections to existing and proposed power plants in Pinal County, ANGS said.
The project was first proposed by El Paso in 2006 (GD 6/22/06). But an official with utility Arizona Public Service told the Arizona Corporation Commission last year that the project was shelved after an unsuccessful open season in which it was the only bidder (GD 4/6).
ANGS announced last spring that it had signed agreements with El Paso regarding the project (GD 5/13).
A bill that would have exempted brine-injection wells related to the creation of gas storage projects from certain groundwater protection requirements failed in the state legislature last year (GD 4/6). The industry has been trying to encourage the development of an in-state gas storage project for years. If ANGS builds its project, it will be the first for Arizona.
In its letter to FERC last month, ANGS noted that the site is situated on private land owned by El Paso — land which ANGS has an option to purchase — as well as Arizona State Trust land that it proposes to lease. The proposal would include the construction of some 350 acres of brine ponds, ANGS told FERC.
The company said the project is needed to support growing demand in Arizona and potentially California, particularly as more renewable power sources come online.
Recent requirements to increase the use of renewable power “will create a need for natural gas to balance the intermittent renewable inputs, creating greater volatility,” said Laura Luce, president of ANGS.
The open season extends through February 25. More information is available from Patrice Thurston at 203-557-1000, or at www.ngsenergy.com. — Stephanie Seay
Disclaimer: Reprinted with the Permission of Platt’s
May 13, 2009 NGS Energy Signs Exclusivity Agreement, Considers Entrance into Arizona Natural Gas Storage Market
NGS Energy Signs Exclusivity Agreement, Considers Entrance into Arizona Natural Gas Storage Market
NGS Energy LP and El Paso Corporation have signed a Memorandum of Acquisition and Understanding with regard to El Paso’s Pinal County, Arizona natural gas storage asset. Under the agreement, NGS Energy has an exclusive due diligence period and right to purchase all acreage, wells, geological and technical data and rights currently held by El Paso. The storage project is in the Picacho Basin and would include a 9 mile header system that could connect to Transwestern Pipeline, El Paso Natural Gas Pipeline, as well as numerous new and proposed gas fired plants.
“The growth in the Arizona market has not received the appropriate response from the natural gas storage industry” said NGS Energy President Laura Luce. “El Paso’s work drilling and coring multiple wells to test the viability of the geology and feasibility of the project are the first steps to sincerely address Arizona’s storage need.”
“The Picacho salt basin will be developed into a highly cyclable gas storage asset that could provide Arizona customers with the flexibility it currently needs and will need with continued growth” continued Luce.
NGS estimates the current acreage position could result in a 20 Bcf storage facility and will utilize above ground evaporation ponds. FERC filings will occur this summer with operations slated for Summer 2012.
“NGS’ background in developing storage assets will only further the speed with which the project can be brought to a market with an immediate need. NGS’ experience will ensure that the asset is developed by an experienced group in the swiftest timeframe.” commented Tom Price, Vice President El Paso.
Any interest or inquiries can be directed to NGS at 203-557-1000.
NGS Energy LP has assembled a portfolio of highly flexible gas storage assets throughout North America. Their newly operational Tres Palacios Gas Storage facility in Matagorda County, Texas just received FERC authorization to operate the entire facility including all interconnects. Other projects in various stages of development are located in Colorado and Louisiana.
El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest interstate natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit www.elpaso.com.
July 15, 2009: Arizona Gas Storage Project
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NGS Energy confident about customer support for Arizona gas storage project |
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July 15, 2009 4:06 PM ET
By Susan Nelson
NGS Energy LP plans to file with FERC in the next two to three months for approval to build the first natural gas storage facility in Arizona. The salt-cavern storage facility would have connections with the interstate pipelines owned by Transwestern Pipeline Co. LLC and El Paso Natural Gas Co.
The storage site is located in the Picacho Basin, about 35 miles south of Phoenix. In May, NGS Energy announced that it had signed an agreement with El Paso Corp., giving it an exclusive due diligence period and right to purchase the gas storage facility, located in Pinal County, Ariz. NGS Energy President Laura Luce told SNL Energy that the company has definitive agreements with El Paso for the purchase of the storage facility.
El Paso, the parent company of El Paso Natural Gas, had recently considered developing the site for underground gas storage but then decided not to proceed. Despite El Paso's reservations, Luce said her company is optimistic about the project. "It's a go," she said. "There is an absolute need for storage in the state and there is customer support for it."
Arizona Corporation Commission Chairman Kristin Mayes is very excited about the project and supportive of the enhanced reliability the project will bring to Arizona, Luce said. The company has received significant support from the state and customers, she said. The company is now in discussions with potential customers, but because of confidentiality agreements she would not name the interested parties.
Multifuels LP has proposed a salt-cavern gas storage project in the same area of Arizona, but "we're proceeding regardless" of Multifuels' plans, Luce said. Multifuels has been stymied by its plans to put the salt water removed from the underground formations in an underground aquifer. The company needed to get an exemption from the state's Environmental Quality Act, which does not allow brine to be injected into aquifers. But the company did not receive approval for the exemption from the Arizona Legislature during the past session.
For its project, NGS Energy plans to store the salt water removed from the caverns in above-ground evaporation ponds. Luce expects that certification from FERC and state agencies for the storage facility will come in a year and construction could begin in fall or winter 2010.
NGS Energy also owns the Tres Palacios gas storage facility in Texas, which began service in 2008. The company's Leaf River Energy Center in Mississippi is under construction, while construction on its Windy Hill gas storage project in Colorado will begin in 2010. Also, the company's Gulf Coast Connector project in Louisiana is under evaluation, Luce said.
Reprint courtesy of: www.snlenergy.com
