U.S. GAS STORAGE SITES TO CONTINUE GROWTH PATTERN

The list of proposed U.S. gas storage projects keeps on growing. In the latest round of proposals: Panhandle Eastern Corp. unit Panhandle Storage Co. (PSC), Houston, teamed up with MG Ventures Storage and Howard Energy Co. to develop a $15 million, 3.8 bcf storage field in Calhoun County, South Central Michigan. The site, designated Lee 8, is to start up Apr. 1, 1995. A four company group with CMS Gas Transmission & Storage Co., a unit of CMS Energy Corp., Dearborn, Mich., as operator agreed

April 25, 1994

2 min read

The list of proposed U.S. gas storage projects keeps on growing.

In the latest round of proposals:

Panhandle Eastern Corp. unit Panhandle Storage Co. (PSC), Houston, teamed up with MG Ventures Storage and Howard Energy Co. to develop a $15 million, 3.8 bcf storage field in Calhoun County, South Central Michigan. The site, designated Lee 8, is to start up Apr. 1, 1995.
A four company group with CMS Gas Transmission & Storage Co., a unit of CMS Energy Corp., Dearborn, Mich., as operator agreed to set up a gas market center and storage unit in St. Clair County, Southeast Michigan.

In other action, J. Makowski Co., Boston, will conduct an open season May 1-31 for its Cayuta gas storage project. Cayuta will be linked to the Connecticui Natural Gas Transmission system in Cayuta, N.Y. Project design calls for firm service provision for as much as 500 MMcfd during a 10 day period.

Elsewhere, HNG Storage Co., Houston, bought the North Dayton gas storage field from Lone Star Energy Storage Inc. The salt cavern field, 30 miles north of Houston, serves Houston Lighting & Power Co. with a working capacity of 3 bcf, withdrawal capacity of 500 MMcfd, and injection capacity of 250 MMcfd.

NEW PROPOSALS

PSC and MG Ventures each will hold a 40% interest in the Lee 8 storage site, while Howard will hold a 20% interest. MG Ventures is a subsidiary of UtiliCorp. United and an affiliate of Michigan Gas Utilities, which will operate the site.

The combine plans to convert to storage service a depleted gas field originally developed in the mid-1970s.

Lee 8 will tie into Panhandle Eastern Pipe Line Co.'s 12 in. West lateral near Marshall, Mich.

Partners with CMS in the St. Clair County project, designated the Grands Lacs market center are Tejas Power Corp.; a subsidiary of Enron Gas Services Corp.; and St. Clair Pipelines, an affiliate of Union Gas Ltd.

The market center is to be linked to Canadian and U.S. transmission systems by a 25 mile pipeline near the Canadian-U.S. border. No details are disclosed on plans that call for "high deliverability" salt cavern storage.