Chestnut Ridge Storage LLC is conducting a non-binding open season for natural gas storage capacity and deliverability that will be offered at the Junction Natural Gas Storage Facility.
The open season for the initial 15 Bcf of working gas capacity began on Aug. 3 and will end at 5 p.m. CDT Sept. 15. After evaluating open season submissions, Chestnut Ridge will seek to execute definitive precedent storage service agreements with successful bidders.
The Junction Natural Gas Storage Facility will be strategically located to provide service to the expanding pipeline networks that are being built to transport the Marcellus and Utica natural gas production to the most valuable markets in the United States. Because of the facility’s design it will be unnecessary to impose restrictions that typically limit the use of conventional gas storage in the region.
Junction Storage will provide highly flexible services that can be specifically tailored to each customer’s needs. This flexibility will provide customers with a valuable new “on-demand” asset to help manage strategic and operational gas requirements, including supply, demand and transportation imbalances, basis, and seasonal price spreads. These services can be particularly useful when the requirements are the result of unplanned circumstances.
The proposed Junction Storage is to be constructed within the West Summit Field that is located in Fayette County, Pennsylvania and Monongalia and Preston counties in West Virginia. Junction Storage will be a multi-cycle, high deliverability facility with up to 25 Bcf of working gas capacity and 500,000 Mcf/day of peak injection and withdrawal capabilities.
The project scope includes interconnects with the Columbia Gas Transmission, Dominion Transmission, Equitrans and Texas Eastern pipeline systems near the town of Waynesburg, Pennsylvania.
Chestnut Ridge will seek authorization to construct the project from the Federal Energy Regulatory Commission and will request market-based rate treatment for this new interstate storage facility. The proposed in service date for this facility is the 2nd Quarter of 2018, with the potential for limited commercial operations in the 4th quarter of 2017.
Chestnut Ridge Storage is owned by affiliates of eCORP International LLC and financial partners. eCORP is a Houston-based privately held energy company, that is engaged in the development of natural gas storage facilities, natural gas pipelines and unconventional resource plays through its subsidiaries and affiliates.