Houston, Texas (September 2, 1998) - Western Hub Properties, LLC (WHP) announced today that its subsidiary, Lodi Gas Storage, Inc. (LGS), is developing a high deliverability natural gas storage facility to provide gas storage and hub services near Lodi, California, 20 miles south of Sacramento. The facility will provide service directly to Pacific Gas & Electric's (PG&E) Line 401 near the Antioch Terminal in the heart of PG&E's market.
The Lodi Gas Storage Project, which is being developed in a depleted natural gas field, will have available in October 1999, 6 billion cubic feet (Bcf) of working gas storage capacity, average injection capacity of 200 million cubic feet per day (MMcf/d) and withdrawal capacity of 200 MMcf/d. The facility is being designed as a multi-turn, high-injection facility in keeping with the natural gas supply management needs of the emerging deregulated natural gas and electricity markets in California. The company is currently in the land acquisition and permitting phase of the project, and construction is expected to begin in July 1999.
"A customer utilizing Lodi's storage services will have intra-day injection and withdrawal rights year-round, allowing a Lodi customer to take advantage of daily gas price fluctuations and balance its gas supply and demand," said Tom Dill, President of WHP. "With 200 MMcf of daily withdrawal and injection capacity, a storage customer can utilize its working gas inventory more than six times annually. In addition, each customer's storage service can be utilized to its specific needs."
LGS is currently in negotiation with several customers. The company also plans to hold an "Open Season" offering 6 Bcf of working gas capacity and associated injection and withdrawal rights in November. Interested parties should contact Jim Fossum at WHP's Sacramento office at (916) 488-1961.
Western Hub Properties, LLC, is a newly formed entity created to provide natural gas hub services supported by high-deliverability storage in the western United States. WHP's founders are Larry Bickle, John Strom, and Chris Jones, the three founders of TPC Corporation (formerly Tejas Power Corporation), a New York Stock Exchange Company, which was sold to PacifiCorp in April 1997.