Project Overview
Sawgrass Storage, L.L.C. (Sawgrass), has filed for a Certificate of Public Convenience and Necessity with the Federal Energy Regulatory Commission (FERC) to develop and operate a new strategically located underground natural gas storage facility northwest of Monroe, Louisiana. Sawgrass is a joint venture between Mill Creek Gas Storage, LLC, a subsidiary of Samson, a privately held energy exploration and production company with more than 1,000 employees, and Cypress Creek Gas Storage, LLC, a subsidiary of AGL Resources Inc., a Fortune 1000 corporation (NYSE: GAS) with extensive natural gas storage and distribution operations. The storage formation proposed for development is the fully depleted Vaughn Sand Reservoir in Lincoln and Union Parishes, located approximately 9,000 feet below the surface. Utilizing the extensive expertise in natural gas drilling and storage operations in the Samson and AGL organizations, Sawgrass would convert the formation from a gas production reservoir into a high-deliverability storage field.Facility Description
The Sawgrass storage project involves the conversion of a high-deliverability depleted natural gas reservoir. Sawgrass has filed for certification to develop the reservoir for storage by directionally drilling up to 16 injection/withdrawal wells from up to five well pads and constructing an 18,900 HP gas compression station near Downsville, LA. The facility is being designed to provide up to 300,000 Mcf per day of injection capacity and 300,000 Mcf per day of withdrawal capacity, providing customers the ability to cycle their inventory up to 1.7 times per year.
Sawgrass’ location provides a great opportunity to receive gas from pipelines that bring gas from diverse and prolific supply sources, including the gas being produced in the Haynesville, Barnett, Woodford, Bossier and Eagle Ford shale formations. Its
delivery flexibility will also provide access to Southeast, Northeast and Midwest markets. View a map of the area with more details.
Sawgrass currently plans to offer Perryville area access to the following
pipelines:
- Midcontinent Express Pipeline – Receipts and Deliveries
- CenterPoint Pipeline (Delhi CP Line Perryville Hub) Receipts and Deliveries
- ANR Pipeline Deliveries
- Columbia Gulf Deliveries
- Texas Gas Pipeline Deliveries
Sawgrass plans to initially provide 30 Bcf of working gas capacity offering flexible services at market-based rates. Sawgrass will provide services to meet the requirements of its capacity holders, which could include utilities, power generators, producers and marketers. Sawgrass also
expects to offer various Hub Services including wheeling, parks and loans, and balancing services to shippers on a number of interstate pipelines.
Project Timeline
Sawgrass made a filing applying for a Certificate of Public Convenience and Necessity (CPCN) from the Federal Energy Regulatory Commission (FERC) on July 27, 2011, requesting market-based rate authority. A more complete timeline is as follows:
- Submit FERC Certificate Application July, 2011
- Issuance of Environmental Assessment November, 2011
- Receive FERC Certificate December, 2011
- Commence Construction March, 2012
- Projected In-Service March, 2013
