10/19/2006 Leaf River Energy Center Announces Open Season
Westport, Connecticut, October 19, 2006 – NGS Investments LLC today announced an open season for natural gas storage services to be provided by the Leaf River Energy Center, a new salt cavern natural gas storage facility to be constructed in Smith County, Mississippi.
Potential shippers are invited to respond during this open season with expressions of their interest in purchasing natural gas storage and hub services to be provided by the proposed facility. The open season runs from October 20 to December 8, 2006.
The Leaf River Energy Center’s customers will be offered storage and hub services featuring flexible rates and terms. Leaf River Energy Center will be offering firm storage with up to 12 turns per year as well as traditional hub services. The project’s customers will have access to multiple natural gas transmission pipelines through a pipeline header system that extends eastward to Clark County, Mississippi. This header system will give Leaf River customers unique access to downstream markets.
The Leaf River Energy Center facility will consist of several salt caverns and pipeline infrastructure to be constructed on a phased basis. The caverns will be created in two salt domes situated on over 400 acres in Smith County. Current plans call for the development of an initial phase of 16 Bcf of capacity across both domes. In later phases the project will be expanded to its planned build out of 32 Bcf. Pending timely regulatory approvals, the first cavern would be operational in late 2008.
The Leaf River pipeline and header system will include interconnections with Tennessee Gas - Zone 1; Destin Pipeline; Dauphin Island; Transco - Zone 4; Sonat; Crosstex Mississippi System and the Gulf South Mississippi Expansion.
In early 2007, the Leaf River Energy Center will seek authorization from the Federal Energy Regulatory Commission to construct and operate the facility under Section 7 (c) of the Natural Gas Act. It will seek, and expects to be granted, market-based rate treatment.
Based in Westport Connecticut, NGS Investments LLC is a newly formed private company managed by seasoned veterans having many years’ experience in gas storage development. NGS Investments intends to assemble a portfolio of highly flexible gas storage assets throughout North America and is currently proceeding with projects in Colorado and Texas. Parties who are interested in the open season or other services from the facility should contact Laura Luce at 203/557-4264, lluce@ngsinvestments.com.
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