Atmos Energy Corporation declares that Atmos Pipeline and Storage, LLC, which is an indirectly wholly owned subsidiary of Atmos Energy Corporation, completed a nonbinding open season for its proposed Fort Necessity salt dome gas storage facility located in Franklin Parish, Louisiana.

"We are very pleased with the favorable results of our open season," said Ron McDowell, Atmos Pipeline and Storage executive vice president. "Our open season participants requested storage capacity that, in total, was more than three times greater than the 5 billion cubic feet (Bcf) of capacity proposed in Phase One of the project."

The open season participants represent a diverse group of companies in the energy industry, including natural gas utilities, national gas marketing and trading firms, interstate pipelines, natural gas producers and LNG-related companies in the United States and international markets.

"This level of interest confirms the strong desire for high-cyclical storage facilities in the Gulf Coast area, particularly a site like Fort Necessity, located downstream of historical interstate pipeline bottlenecks," said Mark Johnson, senior vice president, nonregulated operations, for Atmos Energy Corporation.

"In addition, the market participants recognize the Fort Necessity storage location will provide access to premier markets in the Gulf Coast, Midwest and Northeast regions as well as access to a diverse and competitive natural gas supply from the Barnett Shale, Haynesville Shale and Gulf Coast onshore and offshore production," Johnson said.

Located near Fort Necessity, Louisiana, the proposed development would initially create three 5 Bcf caverns, for an estimated total of 15 Bcf of working gas storage, designed with six-turn injection and withdrawal capabilities. The site has planned interconnects with Tennessee Gas Pipeline's 800 Leg, Columbia Gulf, ANR, Regency, Texas Gas and Trunkline mainlines.

Drilling operations recently began to obtain core samples necessary to complete the FERC 7C application, which is currently anticipated to be filed in August 2008. Pending regulatory approval, the first cavern is projected to go into operation by mid 2011, with the other two caverns in operation by 2012 and 2014. Based on market demand, four additional storage caverns could potentially be developed.

Tags: Atmos Energy Corporation