Chevron to increase Keystone storage capacity

Chevron Pipe Line Co. plans to expand the working gas capacity of its Keystone Gas Storage facility to 7 bcf from 5 bcf.

By OGJ editors
HOUSTON, June 29 -- Chevron Pipe Line Co. plans to expand the working gas capacity of its Keystone Gas Storage facility to 7 bcf from 5 bcf. Keystone is a high-deliverability natural gas storage salt cavern located in the Permian basin production region of West Texas.

The company will hold an open season in third quarter to gauge interest in firm gas storage services for the additional 2 bcf of capacity, expected to be realized from two additional caverns scheduled to be completed in early 2010.

The project has received Texas Railroad Commission approvals and permits to develop these caverns—the facility's sixth and seventh. The fifth cavern was placed in service during fourth-quarter 2006.

The planned expansion is expected to increase the facility's injection capability by 40 MMcfd to 200 MMcfd. The facility's withdrawal capability currently is 400 MMcfd.

Keystone, which has been in service since September 2002, connects to the pipelines of El Paso Natural Gas, Transwestern Gas Co., and Northern Natural Gas Co. These connections allow Keystone to serve customers in Texas as well as the Midwestern and Western interstate regions.

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