PAA Natural Gas Storage, LLC (PNGS) has commenced commercial operations on the second of three storage caverns at its Pine Prairie facility in Evangeline Parish, Louisiana, increasing the aggregate working gas capacity to approximately 13.8 BCF. PNGS is indirectly owned 50% by Plains All American Pipeline, L.P. and 50% by Vulcan Capital.

Phase I development of the Pine Prairie facility consists of three caverns with aggregate permitted capacity of 24 BCF. Cavern #1 began commercial operations in October 2008. Cavern #2 received the requisite permits in March 2009 and commenced commercial operations on April 1, 2009. Leaching operations on Cavern #3 began in December 2008, and this cavern is expected to commence commercial operations during the second quarter of 2010.

“Commencing commercial operations on Cavern #2 is a significant milestone in the development of Pine Prairie,” said Dean Liollio, President of PNGS. “Our ability to bring this capacity online on the schedule contracted with our customers is a notable achievement as it enables our customers to meet their storage requirements and delivery obligations in a timely manner.” Since the facility began operations in October 2008, activity levels have steadily increased to an average throughput across the facility of approximately 325 MMCF per day during March 2009.

Tags: LLC, PAA Natural Gas Storage