The proposed development would initially create three caverns of five billion cubic feet (Bcf) capacity each, for a total of 15Bcf of working gas storage, with six-turn injection and withdrawal capabilities.

Atmos Energy said that the first cavern is projected to go into operation by early 2011 upon receipt of regulatory approval, with the other two caverns in operation by 2012 and 2014. Based on market demand, four additional storage caverns could potentially be developed.

The storage site is located near Fort Necessity in Franklin Parish, Louisiana, which is approximately one mile from Tennessee Gas Pipeline’s 30-inch and Columbia Gulf’s two 30-inch and 36-inch mainlines and approximately eight miles from ANR Pipeline’s two 30-inch and 36-inch mainlines.

Additionally, the site is about six miles from Regency Energy Partners’s 30-inch Winnsboro extension, which is also connected to various other interstate pipelines, including the Texas Gas, Gulf South and Trunkline mainlines. Atmos Pipeline and Storage plans to seek market-based rates for the project as part of the Federal Energy Regulatory Commission (FERC) filing process.