Houston, TX – December 6, 2005 – Bobcat Gas Storage (Bobcat) announced today that it has acquired the necessary rights for the development of a new, independent salt-cavern gas storage facility in Port Barre, Louisiana. This new, high deliverability storage project will be located close to Eunice, Louisiana and the Henry Hub, two of the premier gas trading centers in the Gulf Coast region.
As part of the storage project, Bobcat proposes to develop two salt caverns with a total working gas capacity of 12.0 billion cubic feet (Bcf), with injection capacity of 600 million cubic feet (MMcf) per day and maximum withdrawals of 1 Bcf per day. Bobcat is planning the start of commercial operations during the fourth quarter of 2007. Bobcat will connect with the interstate pipeline systems of Florida Gas Transmission, Williams Gas Pipelines – Transco, Gulf South Pipeline, ANR Pipeline Company and Texas Eastern Transmission Company and the intrastate pipeline system of Cypress Pipeline with minimal pipeline construction.
Due to its high deliverability and flexible operating characteristics, Bobcat Gas Storage, will become an important piece in balancing the commercial functions of gas consuming businesses and consumers and the supply available for consumption. As energy prices become more volatile and more costly for consumers, the importance of reliable, strategically located gas storage will continue to grow.
Bobcat is located in a unique position near the “boundary” between the “production area” in south Louisiana and the “market area” for several pipelines in central/northern Louisiana. This “buffer” location provides Bobcat with attractive interconnection points on the interstate pipelines it will interconnect with from both a physical capacity standpoint and pipeline tariff perspective. It also places Bobcat in an excellent competitive position to serve as a balancing tool for the LNG volumes projected to be delivered in southern Louisiana.
Bobcat already has permits from the state of Louisiana to construct three salt cavern storage wells and associated facilities. To expand the market reach and flexibility of the project, Bobcat will seek additional authorizations from the Federal Energy Regulatory Commission to construct and operate the facility under Section 7(c) of the Natural Gas Act, including market-based rate treatment.
Prospective customers seeking additional project information or wanting to discuss storage opportunities at Bobcat are asked to contact Jamie Craddock in Houston, Texas at (713) 320-0561. Additional information is available at www.bobcatstorage.com.
Bobcat is being developed by Port Barre Investments, LLC. Port Barre Holdings LLC and Port Barre Investments, LLC are owned by Haddington Ventures III, L.L.C. Haddington provides capital to the energy industry, including mid-stream oil and natural gas companies and electric generation, transmission, and distribution companies, with a focus on natural gas storage, gathering and processing, and other mid stream activities.