Friday, December 11, 2009

Natural Gas Storage: "Gas storage at Peigneur moves forward" (AGL Resources) AGL

The stock is up 42 cents at $36.58.
From Lafayette LA's The Daily Advertiser:
The Louisiana Mineral and Energy Board on Wednesday approved an operating agreement that will let AGL Resources move forward with plans to build two more natural gas storage caverns beneath Lake Peigneur.

The company still must obtain more than 20 permits for the project, in which AGL will use water from the Chicot Aquifer to hollow out parts of the salt dome under the lake to create the caverns. AGL already owns and operates two similar caverns in the dome.

"The operating agreement allows us the opportunity to engage in the regulatory process and seek to expand our facility, which will enable (Jefferson Island Storage and Hub) to better serve our customers and the public," said JISH President Dana Grams in a statement. JISH is a subsidiary of AGL Resources.

The agreement, which also resolves a pending lawsuit between AGL and the state over the company's mineral lease at the lake, benefits all stakeholders, Grams continued. The document restricts the use of future caverns to only natural gas storage, limits the amount of daily withdrawal from the Chicot Aquifer to 3 million gallons and allows for the construction of a barricade around wellheads to protect watercraft on the lake.

"The agreement also benefits the local community because it facilitates a proposed infrastructure development project that is expected to produce more than $90 million in economic impact — including the creation of more than 350 direct and indirect construction jobs and additional full-time jobs at the facility," Grams said in the statement....MORE
Previously in natural gas storage:

Investing in Natural Gas
The September contract is trading at $5.82 down 21 cents.
The January '08 was $8.20. If you know anyone with (large) gas storage capacity (besides Uncle Dave on a fishing trip) drop me a line....
Centaurus, Carlyle Carve Gas Caverns as Traders Bet Prices Rise