(Houston - May 22, 2009) PAA Natural Gas Storage, LLC ("PNGS") today announced that it is conducting a non-binding Open Season for 2 billion cubic feet (BCF) of firm natural gas storage service to be available beginning in the second quarter of 2010 at its Pine Prairie salt-cavern storage facility in Evangeline Parish, Louisiana. PNGS is indirectly owned 50% by Plains All American Pipeline, L.P. (NYSE: PAA) and 50% by Vulcan Capital.
PNGS is constructing its Phase I development at Pine Prairie which consists of three storage caverns with total permitted working capacity of 24 BCF. Cavern wells one and two have been placed into service with current total working capacity of approximately 14 BCF. Cavern well three is expected to come on line in the second quarter of 2010.
"We believe that Pine Prairie, with its dual header system and bi-directional connectivity to eight major pipeline systems serving the northeastern, midwestern and southeastern natural gas markets, is among the most flexible natural gas storage hubs in the country," stated Dean Liollio, President of PNGS. "Pine Prairie's connectivity is enhanced by our off-system transportation capacity, which allows us to also provide storage and hub services to other important market centers such as the Perryville hub, the Henry hub and other premium southeastern locations across the Gulf Coast. Further, we anticipate that our high-capacity leaching system will enable us to bring new capacity into service within forecasted timelines, representing a significant advantage to our customers as we expand the Pine Prairie facility."
Earlier this year, PNGS filed an application with the Federal Energy Regulatory Commission for a 24-BCF Phase II expansion at Pine Prairie, which would entail the construction of two new 10-BCF caverns and the expansion of cavern wells two and three from 8 to 10 BCF each. Pending receipt of requisite permits, PNGS is targeting to bring this capacity into service in stages beginning in 2011.
By submitting a non-binding bid during this Open Season, participants will be expressing an indication of interest to contract for storage services based on the terms in their bid. PPEC expects to award the capacity to the winning bidder(s) shortly after evaluating all conforming bids. Interested parties should contact Richard Tomaski at (713) 652-3669 or Brad Ledbetter at (713) 652-3671 or visit www.pineprairieenergycenter.com. The Open Season will end at 2:00 pm CST on June 18, 2009.
PAA Natural Gas Storage, LLC currently owns and operates approximately 40 BCF of natural gas storage capacity located at its Bluewater facility in Michigan and Pine Prairie facility in Louisiana.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. Through its 50% indirect ownership in PAA Natural Gas Storage, LLC, the Partnership also engages in the development and operation of natural gas storage facilities. The Partnership is headquartered in Houston, Texas, and its common units are traded on the New York Stock Exchange under the symbol "PAA."
Forward Looking Statements
Certain statements made herein are forward-looking statements. They include statements regarding the expected timing, capacity and benefits of the Pine Prairie facilities. These statements are based on management's current expectations and estimates; actual results may differ materially due to certain risks and uncertainties. These risks and uncertainties include, among other things, unanticipated shortages or cost increases in power supplies, materials and skilled labor, equipment failure, subsurface geology, permitting delays at governmental agencies, weather interference with business operations or project construction, disruption of domestic and foreign natural gas supplies, regulatory uncertainties and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of natural gas, as well as those factors and uncertainties inherent in the Partnership's business as discussed in the Partnership's filings with the Securities and Exchange Commission.
Roy I. Lamoreaux, Manager, Investor Relations, 713-646-4222 or 800-564-3036
A. Patrick Diamond, Vice President, 713-646-4487 or 800-564-3036