The firm also received an order from the Federal Energy Regulatory Commission (FERC) approving market-based rates for the services it will provide. The project is located in the Spindletop salt dome on the southern edge of Beaumont in Jefferson County, Texas.
The company said that it has plans to initially offer up to 12 billion cubic feet (bcf) of working gas storage capacity in two caverns and depending on market demand, could gradually enlarge the two caverns’ capacity up to 16 bcf.
Approximately one-third of the initial capacity of the first cavern is under contract for firm storage services. Golden Triangle Storage will also build a nine-mile natural gas pipeline from the storage site into Orange County to connect with three interstate and three intrastate pipelines.
Initial commercial operations are slated to begin in late 2010 to early
2011, with the second cavern expected to come online in 2013. The company is in the process of securing additional permits in order to commence construction in March or April 2008.
