Salt Lake City, Utah (June 10, 2009) — Magnum Gas Storage, LLC, announced today the start of a non-binding Open Season for its Magnum Gas Storage Project—the first large-scale, high-deliverability, multi-cycle salt cavern natural gas storage facility to be developed in the Western United States. This non-binding Open Season will extend through 5:00 p.m., Mountain Daylight Time, on July 31, 2009.
The Project is located in central Utah near the town of Delta in Millard County and will offer customers highly customizable natural gas storage services that help balance the fluctuations of supply and demand. These services are ideally suited to meeting the needs of natural gas-fired electric power generation loads, natural gas distribution companies, gas producers and gas marketers in the Rocky Mountain Region, as well as other markets in the Western U.S. that require the flexibility and performance that high-deliverability natural gas storage can provide.
Magnum’s storage facility will interconnect directly or indirectly with multiple pipelines originating out of the Rockies. The Project will be directly connected by a new header pipeline to the Kern River and Questar interstate pipelines at Goshen, Utah, and will indirectly serve the Opal, Wyoming, area market hub pipeline interconnections through backhaul and displacement.
Magnum is initially developing two salt caverns through solution mining, each with working gas capacity of approximately 5.6 billion cubic feet (Bcf). Based on current operational and tariff constraints on the connecting pipelines, the Project will initially be capable of accepting natural gas at Opal for injections of up to 0.30 Bcfd and of withdrawals of up to 0.50 Bcfd with a projected 6 - 9 inventory turns annually.
The first salt cavern is expected to be available for natural gas storage service beginning in early 2012. Depending upon shipper interest, the facility has the potential to offer incremental injection and withdrawal capabilities to customers able to accept delivery at Goshen.
The Magnum Gas Storage Project is currently undergoing “pre-filing review” by the Federal Energy Regulatory Commission (FERC) and other interested stakeholders of its proposal to construct and operate a total of eight caverns with potential combined working gas storage capacity of approximately 45 Bcf. Information concerning this pre-filing review is available at www.ferc.gov under Docket No. PF09-3 (navigate to eLibrary and enter this docket number in the Docket Number search box).
The availability of natural gas storage service at the Magnum site may also be attractive to companies interested in potential co-location of natural gas-fired generation, compressed air energy storage, solar or other renewable generation, or facilities for the storage of refined petroleum products or other non-hazardous substances.
Prospective customers seeking additional information about the Magnum Gas Storage Project should contact Rob Webster or Craig Broussard at 801.990.2970. Additional information is available on the Company’s web site at www.westernenergyhub.com.
Magnum Gas Storage, LLC, is wholly owned by Magnum Development, LLC, a Haddington Ventures, LLC, portfolio company. Among the participating investors in Haddington Ventures are large insurance companies; public and private pension groups, commercial banks and high net worth individuals. Visit Haddington Ventures’ website at www.hvllc.com.