Sempra gets approval for second gas-storage facility

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Published: August 24,2012

Tags: approval, energy, federal agency, natural gas, pipeline, storage

SIMPSON COUNTY — Sempra U.S. Gas & Power, LLC, a subsidiary of Sempra Energy, reports it has received authorization from the Federal Energy Regulatory Commission to place a second underground natural gas storage cavern into service at its Mississippi Hub Storage facility located in Simpson County.

The additional 7.5 billion cubic feet (Bcf) cavern expands the facility’s total working gas storage capacity to 15 Bcf.

“The additional capacity at Mississippi Hub Storage represents the next step in our strategy to expand our footprint in the rapidly evolving natural gas market in the Southeast,” said Michael Gallagher, regional president of natural gas for Sempra U.S. Gas & Power. “As more natural gas supply comes online and liquefaction terminals move forward, customer demand for additional underground storage at strategic pipeline hubs like Mississippi Hub Storage will continue to grow.”

The injection capacity currently available at Mississippi Hub Storage is fully contracted, according to Sempra. Additional injection capacity at the facility will become available for customers once the dewatering process at the new cavern is complete. The facility has injection capability of 450 million cubic feet per day (MMcfd) and a withdrawal capability of 1,200 MMcfd.

In 2013, the company said it expects to complete construction on a third 7.5 Bcf cavern, further expanding the site’s storage capacity to 22.5 Bcf.

Sempra U.S. Gas & Power of San Diego also owns and operates an additional 15.5 Bcf of underground natural gas storage at Bay Gas Storage near Mobile, Ala. along with two natural gas distribution utilities and long-distance gas pipelines.

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