Sempra Pipelines & Storage, ProLiance Transportation & Storage Announce Partnership in Louisiana Gas Storage Facility
Monday May 16, 4:00 pm ET
SAN DIEGO and INDIANAPOLIS, May 16, 2005 (PRIMEZONE) -- Sempra Pipelines & Storage, a subsidiary of Sempra Energy (NYSE:SRE - News), and ProLiance Transportation and Storage, LLC, the asset development and ownership affiliate of ProLiance Energy, LLC, a natural gas marketing company, today announced an agreement to construct, own and operate the Liberty Gas Storage natural gas storage facility presently under development in Calcasieu Parish, La. Under the terms of the agreement, ProLiance Transportation & Storage will acquire a 25-percent ownership in the project with Sempra Pipelines & Storage retaining 75 percent ownership, along with responsibility for development and operation of the facility.
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Additionally, ProLiance Energy has entered into a binding precedent agreement with Liberty that requires both parties to sign a long-term contract for 5 billion cubic feet (Bcf) to 6 Bcf of storage capacity, upon receipt of Liberty Gas Storage's permit from the Federal Energy Regulatory Commission (FERC).
``Working together with ProLiance Transportation & Storage to develop Liberty Gas Storage will enhance the success of the project,'' said George Liparidis, president of Sempra Pipelines & Storage. ``ProLiance Energy is a substantial purchaser and transporter of natural gas in the Gulf Coast region, and clearly understands the value of well-located, high-deliverability salt-cavern storage.''
Liparidis added that the Liberty project is in a strategic location to serve the gas storage needs off of several existing interstate and intrastate pipelines, and could facilitate future LNG supplies that are expected to be coming into the region in just a few years.
John Talley, president of ProLiance Energy said: ``This partnership will unite the strengths of the two companies. Sempra Energy has a proven track record in successful asset development and the Liberty Project will provide an enhancement to ProLiance's existing gas supply, transportation and storage portfolio that we utilize daily to serve our customer base of utilities, municipals, power generators, and commercial and industrial customers throughout the Midwest and Southeast.''
Liberty Gas Storage will be located near the town of Sulphur, La., and will provide firm storage and related services to customers transporting natural gas on various interstate pipelines in the region, which serves markets in the U.S. Southeast, Midwest and Northeast. Liberty Gas Storage petitioned for authorization from the FERC to construct and operate the facility Mar. 25, 2005.
The facility, which will provide 17 Bcf of working gas capacity for storage, is expected to be in service in the second quarter of 2006. The project also will include surface facilities to allow for a maximum injection of 500 million cubic feet per day and maximum withdrawals of 1 Bcf per day.
Additionally, Liberty Gas Storage will be located near the Cameron and Port Arthur Pipelines, two new pipelines under development by Sempra Pipelines & Storage, connecting area LNG regasification terminals to the interstate gas transmission system. FERC has granted Sempra a 7(c) permit to construct and operate the Cameron Pipeline, which recently concluded an open season to determine market interest.
An application for the Port Arthur Pipeline's operating permit was filed with the FERC Feb. 28, 2005. Additionally, Port Arthur Pipeline concluded a successful open season in April 2005.
Sempra Pipelines & Storage acquires, builds and operates natural gas pipelines and storage facilities in Mexico and the United States. The company operates 165 miles of high-pressure natural gas pipelines and is developing another 230-plus miles to connect major natural gas supply sources.
Sempra Energy, based in San Diego, is a Fortune 500 energy-services holding company with 2004 revenues of $9.4 billion. The Sempra Energy companies' more than 13,000 employees serve more than 10 million customers in the United States, Europe, Canada, Mexico, South America and Asia.
ProLiance Energy is a natural gas marketer headquartered in Indianapolis, Indiana, with sales offices in Illinois, Kentucky, Michigan, Missouri, Ohio, and Texas. The ProLiance family of companies serves natural gas customers in 18 states in the Midwest and Southeast. ProLiance Energy is jointly owned by affiliates of Citizens Gas and Coke Utility and Vectren Corporation.
Sempra Pipelines & Storage is not the same company as the utilities, SDG&E or SoCalGas, and is not regulated by the California Public Utilities Commission
Contact:
Sempra Energy
Jennifer Andrews
(877) 866-2066
www.sempra.com
ProLiance Energy
Tom Morton
(317) 231-6800
www.proliance.com
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Source: Sempra Pipelines & Storage
