The first firm storage contract has been signed for capacity in Louisiana's newest underground gas storage site.
LGS Intrastate Inc., a subsidiary of Louisiana General Services Inc., reserved capacity for 250 MMcf of gas for 5 years in Bridgeline Gas Distribution Co.'s storage cavern near Sorrento, La..
The site is 45 miles north of New Orleans.
With 10 bcf of storage capacity, Bridgeline's leached salt dome cavern is one of the largest gas storage sites along the Gulf Coast. It has a working capacity of 6 bcf. Injection capacity is 65 MMcfd, production capacity 320 MMcfd.
Bridgeline's firm gas storage contracts reserve a specified volume of cavern capacity and specified deliverability. The company also offers interruptible gas storage, based on available capacity and deliverability.
Bridgeline began offering capacity in the $28 million storage facility last July.
A wholly owned subsidiary of Texaco Inc., Bridgeline supplies more than 20% of Louisiana's gas demand through a 700 mile intrastate pipeline. Total system demand is 2.4 bcfd, with average throughput of more than 700 MMcfd.
Bridgeline interconnects with eight interstate and seven intrastate pipelines.
Another Texaco subsidiary, Riverway Gas Marketing Co., sold LGS the gas it is storing in Bridgeline's cavern.
Bridgeline and Riverway are based in New Orleans.
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