Bobcat Seeks to Expand Capacity of Its First Two Caverns and Plans 3Q '07 Open Season

HOUSTON--(BUSINESS WIRE)--Bobcat Gas Storage (Bobcat) announced today that it will file with FERC for authorization to expand its first two caverns from 6.75 Bcf to 7.8 Bcf working gas capacity each. Bobcat has completed the drilling of its first storage cavern well and will immediately commence leaching operations with an expected in service date of October 2008.
 
Bobcat currently has FERC authorization to construct two natural gas storage caverns with a working gas capacity of approximately 6.75 Bcf per cavern. Since the original authorization, additional testing has revealed that the Bobcat salt is capable of supporting a larger amount of working gas per cubic foot than originally anticipated, permitting greater operational efficiency and resulting in a substantially higher level of working gas capacity than previously planned.

Bobcat also announced that it plans to hold an open season in the 3rd quarter of 2007 for the anticipated 7.8 Bcf of working gas capacity from its second storage cavern, now planned to be in service several months ahead of schedule in June 2009. The drilling of the second storage cavern well is nearly complete, with the leaching of the second cavern well planned to commence by the end of August 2007.

Bobcat has long-term commitments from a variety of high-quality customers for substantially all of the certificated storage capacity of the first cavern. Bobcat will offer customers service under its FERC-approved tariff at market-based rates. In addition to the storage facility, Bobcat will operate a header system offering customers premier interconnections with five interstate pipelines, including Texas Eastern Transmission, L.P., Transcontinental Gas Pipeline Company, Florida Gas Transmission, Gulf South Pipeline and ANR Pipeline, all as part of its initial project. Bobcat is currently evaluating additional interconnects that will provide its customers with more flexibility in sourcing supply and more diverse market reach including connections to LNG supply sources.

Prospective customers seeking additional project information or wanting to discuss storage opportunities at Bobcat are asked to contact Jamie Craddock at (713) 800-3510. Additional information about the project, construction updates and information on the upcoming open season are available at www.bobcatstorage.com.

Bobcat is being developed by Port Barre Investments, LLC, which is owned by members of management, Haddington Energy Partners III LP, a private equity fund managed by Haddington Ventures, LLC and GE Energy Financial Services, the energy investing unit of GE (GE: NYSE).

Phone: (713) 532-7992
Author: Communications
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