Unocal Global Trade said Wednesday it has begun solution mining its Keystone gas storage facility near Kermit, Tex.
Located near the Waha Hub, the Keystone project will have 3 bcf of high deliverability salt cavern storage capacity, with sustainable 100 MMcfd injection and 200 MMcfd withdrawal capability. The facility is due to begin operation in the first quarter of 2002, coincident with the deregulation of electric power generation in Texas.
The Unocal Corp. subsidiary said fuel storage will be important, given gas market volatility and the large number of merchant generation facilities under construction in Texas.
Joseph Blount, president of Unocal Global Trade, said, "Additional, high deliverability salt cavern storage capacity will be required to provide the highly flexible, no-notice service requirements of these generators and to serve the operational load balancing requirements of the pipelines serving these facilities" said.
"The Keystone Gas Storage Facility is a critical addition to existing gas infrastructure in and around Waha, which currently lacks effective storage capacity to provide these services."
Unocal Global Trade manages Unocal's pipeline, crude oil terminal, and gas storage interests. Unocal Corp. owns 100% of the Keystone project.
Unocal Canada Ltd. owns 93.79% of the Aitken Creek gas storage facility adjacent to the Alliance pipeline in British Columbia. Aitken Creek has 44 bcf of reservoir storage and more than 400 MMcfd of deliverabilty. It is being expanded to 52 bcf and 500 MMcfd.
Also, Unocal Canada Alberta Hub Ltd. owns 30% of the Alberta Hub storage facility near Edson, Alta., with 25 bcf of capacity and 400 MMcfd of deliverablity.