Sempra Energy to Develop Louisiana Gas Storage Facility

Evangeline Parish, Louisiana
(Click to Enlarge)
Sempra Energy Global Enterprises announced that one of its subsidiaries has acquired from SG Resources Louisiana, L.L.C. land and associated rights for the development of a new, salt-cavern gas storage facility in Evangeline Parish, La. This project will operate under the name of Pine Prairie Energy Center and will be close to Henry Hub, the nation's largest natural gas trading center.

Pine Prairie is targeted to begin operations by the fourth quarter of 2005. The development plans provide for three salt caverns with a total working capacity of 24 billion cubic feet (Bcf) of natural gas, enabling maximum injections of 1.2 Bcf per day and maximum withdrawals of 2.4 Bcf per day.

Due to their high deliverability operating characteristics, salt-cavern storage facilities like Pine Prairie have become key components in supporting the commercial functions of power generators, pipelines, utilities, energy merchants and liquefied natural gas (LNG) regasification terminal operators throughout the United States.

"Pine Prairie Energy Center is strategically located, allowing for interconnections with up to nine key interstate and intrastate pipelines," said Donald E. Felsinger, group president of Sempra Energy Global Enterprises, the umbrella for Sempra Energy's growth businesses. "These interconnections will link Pine Prairie directly to Henry Hub, making it a key intersection point of physical and financial markets, and optimally suited to help our customers manage their price and volumetric risk in an increasingly volatile natural gas market."

Pine Prairie Energy Center will seek authorization from the Federal Energy Regulatory Commission to construct and operate the facility under Section 7(c) of the Natural Gas Act, including market-based rate treatment.

In addition, Sempra Energy Global Enterprises currently is developing Bluewater Gas Storage, a 27 Bcf storage facility in St. Clair, Mich. Bluewater Gas Storage is slated to begin commercial operations in May 2004.

SG Resources Louisiana, L.L.C. is a wholly owned subsidiary of SGR Holdings, LLC.

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