2/28/07 NGS Energy seeks FERC approval for salt storage facility in Texas 

NGS Energy Fund has asked the Federal Energy Regulatory Commission for permission to build a high deliverability salt-dome gas storage facility along the Gulf Coast of Texas. Tres Palacios Gas Storage would be located in Matagorda County, Texas, in a solution-mined structure previously used for brine production. The project includes the conversion of three storage caverns with a total working capacity of 36 Bcf, supported by about 18 Bcf of cushion gas.Tres Palacios would be designed to withdraw and deliver 2.5 Bcf/d while injecting gas at a rate of up to 1

Bcf/d. The project also would include a 41-mile pipeline eader system connecting the storage facility to 10 interstate pipelines.

In the application to FERC, the company requested a final order granting federal authorization by September 14, which "will enable Tres Palacios to bring into commercial operation as much as 20.89 Bcf of natural gas storage capacity by the second quarter of 2008 in order to meet the demands of a number of the prospective customers that have responded to Tres Palacios’ open season."

The Connecticut-based firm requested FERC approval for market-based rates for all storage, park-and-loan, wheeling and other hub services.