NGS Energy Acquires New Home Natural Gas Storage Project From Southern Natural Gas Company
WESTPORT, Conn., Nov 14 /PRNewswire/ — Independent natural gas storage developer, NGS Energy LP, the parent company of Leaf River Energy Center, LLC, announced today it will acquire the New Home Natural Gas Storage Project from Southern Natural Gas Company (SNG), a wholly owned subsidiary of El Paso Corporation, increasing NGS’ access to the New Home dome for natural gas storage development.
The acquisition will advance NGS’ opportunity for gas storage operations on the New Home dome and provide developmental efficiencies, enhanced risk management, and economies of scale.
As part of the sale of its New Home assets, SNG will also sign a firm storage commitment to store natural gas in the second of Leaf River’s four underground salt caverns, beginning in 2010.
Leaf River Energy Center filed its certificate application with the Federal Energy Regulatory Commission (FERC) on October 11, 2007. In its filing, Leaf River requested authorization from the FERC to charge market- based rates and build a 43-mile, 24-inch pipeline header system. The bi- directional, looped header system will traverse Smith, Jasper, and Clarke Counties in Mississippi and have interconnections with the Kinder Morgan Midcontinent Express pipeline, Gulf South Southeast Expansion, Tennessee Gas Pipeline (Zone 1), Transcontinental Pipeline (Zone 4) and Destin (Shubuta), in addition to an interconnection with SNG.
Leaf River is currently holding a binding open season until Thursday, November 15 and is continuing discussions with prospective firm storage customers to confirm additional capacity commitments at the facility.
Pending receipt of necessary approvals, Leaf River expects to begin construction in mid-2008, targeting a July 1, 2009, in-service date.
More information about Leaf River can be found at the company’s website: http://www.leafriverenergycenter.com/, or by contacting Laura Luce (203) 454-4126.
NGS Energy LP
CONTACT: Ashlee Fox of NGS Energy LP, +1-203-685-8700
Web site: http://www.leafriverenergycenter.com/