Market Hub Partners LP (MHP), a division of Duke Energy Gas Transmission, said Tuesday it will expand its Egan, La., gas storage facility to 16 bcf from 12 bcf.
MHP has filed with the Federal Energy Regulatory Commission for permits to begin the $9 million expansion. MHP expects to reach 16 bcf of working storage capacity at the salt cavern by 2005.
"A return to normal winter weather patterns and increased commodity volatility underscore the need for more storage capacity and deliverability,'' said Robert Evans, president of Duke Energy Gas Transmission. "The Egan expansion will create additional services for both firm and interruptible customers to meet the needs of traditional customers as well as our growing power generation customer base."
Duke said the expansion would enable companies to reduce costs from market fluctuations while increasing the security of deliverability.
With Egan and a facility in Moss Bluff, Tex., MHP Partners has 23 bcf of high-deliverability salt cavern storage. It also is developing salt cavern storage facilities in Copiah County, Miss., and Tioga County, Pa.
Duke Energy Gas Transmission, a Houston-based division of Duke Energy Corp., operates 12,000 miles of interstate gas pipelines known as Texas Eastern Transmission Corp., Algonquin Gas Transmission Co., East Tennessee Natural Gas Co., and�with other partners�Maritimes & Northeast Pipeline Co. Together, they transport 8% of the gas used in the US.
