Unocal midstream unit puts Keystone gas storage facility into operation

July 12, 2004
Unocal Midstream & Trade, a business unit of Unocal Corp., reported that it has placed a third natural gas storage cavern into service at its Keystone gas storage facility in the Permian basin nearby Waha Hub in West Texas.

By OGJ editors

HOUSTON, July 12 -- Unocal Midstream & Trade, a business unit of Unocal Corp., reported that it has placed a third natural gas storage cavern into service at its Keystone gas storage facility in the Permian basin nearby Waha Hub in West Texas.

Unocal said that mining operations continue for two additional caverns. This added capacity brings Keystone's total active gas storage capacity to about 3 bcf of gas; total capacity for the site could reach 5 bcf by early 2006, the company said.

The Keystone facility connects to pipeline systems owned by El Paso Natural Gas, Transwestern Gas Co., and Northern Natural Gas Co.

Unocal said it has sold out all the firm capacity in the first four caverns and is now talking with customers about a fifth cavern. The company also has applied for Texas Railroad Commission approval to add three more caverns to its facility; mining of the sixth cavern could begin by yearend.