SG Resources moves ahead with salt cavern gas storage facility

SG Resources Louisiana LLC (SGR), a unit of Houston-based SGR Holdings LLC, said it is moving forward with the development of a new salt cavern natural gas storage facility in Evangeline Parish, La.

By OGJ editors

HOUSTON, Aug. 6 -- SG Resources Louisiana LLC (SGR), a unit of Houston-based SGR Holdings LLC, said it is moving forward with the development of a new salt cavern natural gas storage facility in Evangeline Parish, La. The storage facility, to be called the Louisiana Energy Center, will have the capacity to hold a total of 16 bcf of gas in two caverns. The 60 acre site and acquired mineral rights would allow for two additional caverns to be built to support future growth in demand, SGR said.

SGR plans to hold an open season for storage capacity starting in the third quarter of this year. The project is slated to begin operation in fourth quarter 2004.

The new storage site will function as a transportation and storage hub for nine major natural gas pipelines: Transcontinental Gas Pipe Line Corp., Texas Eastern Transmission LP, ANR Pipeline Co., Texas Gas Transmission Corp., Florida Gas Transmission Co., Tennessee Gas Pipeline Co., Columbia Gulf Transmission Co., Bridgeline Gas Distribution Co., and Louisiana Interstate Gas Co.

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