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NYSE: ATG $33.58 +0.59
Jul 8 2008 3:50PM ET
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Project Background
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Questions? Need more information? Have comments you want to share? We want to hear from you.
Send an email or contact
Jack Holt, 404-584-4255 or
Keith Poston, 404-584-4189
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AGL Resources is completing feasibility studies to build a natural gas storage project in the Spindletop salt dome, approximately a half-mile to a mile below ground, by hollowing out the salt to create caverns. Virtually impermeable and protected deep underground, salt dome caverns are the safest means of storing natural gas.
Stored natural gas provides a number of benefits:
- balances changes in market demand,
- stabilizes prices and
- provides a buffer against supply disruptions, such as hurricanes.
The Golden Triangle Storage project will increase Jefferson County’s storage capacity by 80 percent, enhancing the area’s position as a national energy hub and increasing the functionality of both its existing and planned energy infrastructure.
Golden Triangle Storage will be designed, built and operated to meet or exceed the latest regulatory guidelines for safety and environmental sensitivity. Located on land on the far southern side of Beaumont, the facility will be on the site of old sulfur mines, continuing oil and gas production, and near existing storage facilities.
Market Need
The project will be conveniently located near natural gas supplies, including natural gas imported through area liquefied natural gas (LNG) terminals, East Texas natural gas fields and offshore deepwater wells. A number of nearby pipelines can deliver that natural gas to customers in the region as well as to markets in the Northeast, Mid-Atlantic and Southeast.
Golden Triangle Storage will initially offer 12 billion cubic feet (Bcf) of working gas capacity – enough natural gas to power nearly 300,000 Texas homes for a year – in two salt dome caverns and can be expanded to 28 Bcf. It will offer both firm and interruptible services.
Golden Triangle Storage offers customers
- high-deliverability storage at a liquid market point
- easy access to multiple supply sources, including liquefied natural gas imports
- interconnections with six pipelines serving diverse markets with counter-seasonal demand.
Interconnections include
- Florida Gas Transmission (downstream of station 6)
- Texas Eastern Transmission (WLA pool)
- Centana Pipeline
- Energy Transfer Company’s Texoma line
- Kinder Morgan Texas
- ExxonMobil’s Golden Pass Pipeline (under construction)
On the supply side, Golden Triangle Storage offers easy access for East Texas onshore production, including Barnett Shale and Bossier Sands gas, as well as deepwater supplies. In addition the facility is conveniently located near an expected 8 to 11 Bcf/d of LNG imports from terminals along the Sabine-Lake Charles corridor.
Natural Gas Supply
The project will offer multiple cycles with up to six turns per year and 600 million cubic feet per day (MMcf/d) of deliverable capacity and 300 MMcf/d of injection capacity.
The project will serve local petrochemical facilities and the Houston Ship Channel through Texas intrastates as well as markets in the Northeast, Mid-Atlantic and Southeast via interstate lines.
Pending all regulatory approvals, construction will begin in 2008. The first storage cavern would be ready for commercial operation in late 2010 or early 2011 and the second cavern in 2013.
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