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CHEVRON TO OPEN ITS FIRST SALT-DOME STORAGE FACILITY FOR NATURAL GAS

CHEVRON TO OPEN ITS FIRST SALT-DOME STORAGE FACILITY FOR NATURAL GAS
 SAN FRANCISCO, May 11 -- Chevron Corporation announced today that drilling has begun on the Petal Salt Dome near Hattiesburg, Miss., to create the company's first underground storage facility for natural gas.
 The Petal facility will be designed and constructed by Warren Petroleum, a wholly owned subsidiary of Chevron, and is characterized as a "peaking" rather than as a "seasonal" storage system. With a working capacity of 3.2 billion cubic feet, and a design delivery rate of 320 million cubic feet of natural gas per day, the entire volume of storage will be able to be withdrawn in a 10-day time frame. Plans also incorporate a compression system designed to allow the underground cavern to be filled in 20 to 25 days.
 "The more traditional underground gas storage caverns, typically former gas reservoirs which are no longer producing, by their very structure do not permit rapid withdrawal of natural gas," notes Peter Robertson, President of Warren Petroleum. "Such systems are considered 'seasonal' because the gas is withdrawn over an entire season."
 The unique geological properties of a salt-dome cavity allow for the rapid fill and withdrawal not possible in most other underground storage systems. Salt-dome storage permits a supplier to vary the volumes on a flexible, as-needed basis.
 "The Petal underground storage project will enable Chevron to offer its natural gas customers increased flexibility, or 'swing rights,'as well as additional supply security," said Chuck Jordan, Vice President and General Manager of Chevron's Natural Gas Business Unit.
 "Such storage will provide Chevron a back-up supply for its contract deliveries," said Jordan, "and it can serve as a buffer to balance the differences between production and demand."
 Drilling is now in progress on the Petal Salt Dome alongside other existing caverns owned by Warren Petroleum and used to store butane and propane. Once the well is complete, fresh water will be pumped into the well to dissolve the salt, thereby creating the cavern. The saltwater is simultaneously pumped back to the surface.
 Construction of the above-ground piping and compression system is expected to begin in the first quarter of 1993. Chevron will expend about $30 million on the Petal Salt Dome storage system, which is scheduled to be in service for the winter of 1993-94.
 Initially, the Petal facility will be connected to Tennessee Gas Pipeline Company's 500 Line and to United Gas Pipeline Company. Additionally pipeline connections, as well as a second storage cavern, might follow.
 Interested parties should contact Chevron's Natural Gas Business Unit.
 -0- 5/11/92
 /CONTACT: Jim Kelley of Chevron Natural Gas, 713-754-5817; Bill Rinehart of Warren Petroleum, 918-560-4305; or Joe Bethea, Affairs, 601-355-4781 or Jan Golon, Public Affairs, 212-303-3833/
 (CHV) CO: Chevron Corporation ST: California, Mississippi IN: OIL SU:


RM -- SF004 -- 8577 05/11/92 11:17 EDT
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Publication:PR Newswire
Date:May 11, 1992
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