|
HOUSTON, Dec. 31, 2002 -- SGR Holdings, L.L.C. announced that its wholly-owned subsidiary, SG Resources Mississippi, L.L.C., (SGRM) has executed its pipeline interconnect agreement with Destin Pipeline Company, L.L.C. as part of its planned direct interconnect for the Southern Pines Energy Center, a new salt cavern natural gas high deliverability storage facility to be located in Greene County, Mississippi.
SGRM will build a 3.12-mile pipeline to the Destin main line, providing a dual 24-inch, bi-directional interconnect with a 600 million cubic feet per day meter capacity. The interconnect point will be on the Destin pipeline immediately south of the Sand Hill compressor station.
This interconnect is part of SGRM's initial construction plans, which received approval from the Federal Energy Regulatory Commission under Section 7 of the Natural Gas Act earlier this year.
In October 2002, SGRM executed an interconnect agreement with Florida Gas Transmission. The Company also plans to file for regulatory approvals in early 2003 for bi-directional interconnects to Transco and Gulf South pipelines. These additional direct interconnects are planned to be operational by 2004.
When completed, the facility will provide 12 billion cubic feet (Bcf) of storage in two caverns and will be capable of supporting natural gas withdrawal rates of up to 1.2 billion cubic feet per day (Bcf/d) and injection rates of up to 0.6 Bcf/d. The Southern Pines facility will initially have a bi-directional interconnect with the Destin Pipeline, which provides direct access to the Southern Natural Gas, Tennessee Gas Pipeline, Florida Gas Transmission, Transco, Gulfstream and Gulf South Pipeline systems.
The SGRM has been authorized to offer firm and secondary firm storage services at "market-based" rates to be negotiated to meet the needs of individual customers. The facility is ideally located to serve as a supply and storage market hub for nine major pipelines serving the southeastern and mid-Atlantic region of the United States.
"The southeast and mid-Atlantic regions are among the fastest growing areas in the U.S.," A. J. (Tony) Clark, Principal of SGR Holdings, said. "With supply lagging and demand for natural gas growing, delivery system infrastructure is needed to ensure reliability of supply.
The Southern Pines Energy Center, a high deliverability gas storage facility with quick cycling ability and multiple pipelines interconnects, will create a market center hub that will add much needed flexibility in the flow of natural gas in this region for both pipelines and end users.
Additionally, salt cavern high deliverability storage will support the growing market for LNG imports as LNG becomes a more accessible supply source in support of the traditional national gas producing regions."
SGR Holdings, L.L.C., a Houston-based company, develops, owns, and operates high-deliverability, salt cavern, natural gas storage facilities.
For further information about the Southern Pines project, contact A.J. (Tony) Clark at (713) 914-8188, or access SGR's web-site at www.sgr-holdings.com .
| 
Articles 
| View all PennWell sites | View all PennWell events
Add RSS Feed
