Entre Energy Corp., Houston, is seeking federal permission to develop a U.S. offshore gas storage site.
Under an application filed with the Federal Energy Regulatory Commission, Entre proposes to construct its Chandeleur storage facility by converting a Miocene gas reservoir above 4,900 ft on Block 29 in the southernmost tier of the Chandeleur federal planning area in the Gulf of Mexico. Chandeleur Block 29 lies in 44 ft of water just outside Louisiana state waters, about 50 miles east of New Orleans and 25 miles south of the Mississippi coast.
Entre's application proposes market based storage rates set through arms length negotiations with potential customers. After negotiating precedent agreements for long term storage service, Entre will conduct an open season to offer available capacity.
Entre expects FERC approval of the project by midsummer, timing that would allow the company to begin preparing in second half 1994 to offer limited storage ser ices during the 1994 95 heating season. TCW Asset Management Co., Houston, arranged principal acquisition and conversion financing for the project.
The proposed Chandeleur storage site at first would have about 26 bcf of working gas capacity and a peak injection/withdraival rate of 300 MMcfd. However, F. Scott Haire, president of Entre, said the installation's working gas capacity eventually could be expanded to as much as 75 bcf and injection/withdrawal rates to as much as 850 MMcfd, making it one of the largest storage fields in the Gulf Coast region.
Haire said, "By using an existing reservoir well suited for gas storage, the Chandeleur storage facility will provide an immeasurable level of gas supply reliability in an area of depleting reserves."
Haire estimates Entre will be able to offer 7.5 10 bcf of storage capacity by winter 1994 95, 26 bcf in winter 1995-96, and 41 bcf by winter 1996 97.
"We could increase capacity from there, based on the market need," he said.
PROJECT DETAILS
Tenneco Inc's exploration and production unit discovered Chandeleur 29 field in 1983. The block was among a package of Tenneco's Gulf of Mexico assets acquired by Chevron Corp. in November 1988 at a cost of about $2.5 billion.
Entre acquired the tract from Chevron in January 1993. Currently shut in, Chandeleur 29 field's cumulative production amounts to about 114 bcf of gas. Entre estimates remaining gas in place at about 153 bcf.
Three wells penetrate the Chandeleur 29 reservoir, formerly producing through the tract's four pile Platform A. During production, gas moved from the field through a 10 in. pipeline connected to the East Louisiana system of Texas Eastern Transmission Corp. (Tetco), Houston. Gas entered a 24 in. segment of Tetco's East Louisiana pipeline between Platforms A and B on Main Pass Block 92. From there it moved to a Tetco pipeline junction near the town of Venice in Plaquemines Parish on the Louisiana delta.
In addition to existing components, Entre intends to:
- install a second four pile structure, Platform B, on Chandeleur 29 to process and compress gas for transport. It is to be bridge connected to Platform A.
- Lay a 6 1/2 mile, 16 in. pipeline from Chandeleur 29 Platform B to Main Pass Platform B, looping the existing 10 in. line.
- Drill five more wells into the Chandeleur 29 reservoir.
With the field's three existing wells, Entre could inject as much as 100 MMcfd of gas, but the company is limited by the 10 in. pipeline to Main Pass, the only way for gas to enter or leave Chandeleur 29 facilities.
Haire said, "We can't begin construction of the 16 in. line until we receive the certificate from FERC, so we have asked the commission for expedited treatment in handling our application. We hope to receive that certificate in fairly short order."
If Entre receives FERC clearance soon enough, Haire said, the 16 in. fine could be installed, tested, and in operation in August. Entre also is considering several proposals that would allow it to move gas from Chandeleur 29 in ways other than Tetco's East Louisiana system.
"We will be either building or considering a third party to build an additional pipeline to provide additional transportation to and from the field," Haire said. "Ultimately, one of the new ways out could provide more pipeline conductivity to other interstate pipelines with offshore gathering systems in the gulf.
"Once installed, connections to other pipeline systems could be extended into the Mobile and Viosca Knoll planning areas and other parts of Main Pass. Adding gas upstream of Chandeleur 29 storage facility would be very attractive."
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