FIRST RESERVE GAS COMPANY SIGNS GAS STORAGE CONTRACT WITH CANWEST GAS SUPPLY INC.
DALLAS, Aug. 11 /PRNewswire/ -- First Reserve Gas Co. announced today that its affiliate, Wild Goose Gas Storage Co., has signed a contract for a 15-year underground gas storage service with CanWest Gas Supply Inc. of Vancouver, British Columbia. The storage service will be provided from the Wild Goose Gas Storage facility being developed in northern California. The contract, which is subject to certain conditions being satisfied by Nov. 1, 1993, calls for CanWest to commit to firm storage service for three quarters of the project's initial capacity of 6.0 billion cubic feet ("BCF") of storage space and 400,000 thousand cubic feet ("MCF") per day of withdrawal capacity. In light of this commitment, Wild Goose is evaluating market interest and is considering expanding its Phase I project to a total of 9 BCF of storage space and 600,000 MCF per day of withdrawal capacity. CanWest is a gas marketing company that has over 2.5 trillion cubic feet of natural gas committed under contracts with British Columbia producers, and purchases other spot and term gas supplies in Alberta and in the United States. It transports and sells approximately 690,000 MCF per day to markets in British Columbia, the Pacific Northwest, California, other western states and eastern Canada. The planned storage project will be located 50 miles north of Sacramento in the depleted Wild Goose Gas Field. The field produced 100 BCF of gas since its discovery in 1951. The storage facility is being developed in partnership with Swan Energy Services Corp., a firm owned by Dallas-based investors and principals of Muse, Stancil & Co., an international engineering consulting firm. "In the post 636 era, gas storage, with the ability to inject and withdraw gas at high rates, will become a vital tool to allow gas sellers and buyers to match daily and weekly load swings within the allowed pipeline tolerances to avoid imbalance penalties," stated Michael G. Wright, president of First Reserve Gas Co. "It will also become increasingly important to existing and fast-developing gas-fired power generation markets in California and the Pacific Northwest, particularly to dispatchable units that may operate at low and highly variable annual load factors," he added. First Reserve Gas Co. is also the owner/operator of Hattiesburg Gas Storage Co., a 3.5 BCF salt dome gas storage facility in Petal, Miss., which has been in operation since 1990. Mark Roberge, the project manager for Wild Goose, said, "Our experience with the diverse customer mix at Hattiesburg provides us with a basis for the development of storage services that meet a broad range of customer needs at Wild Goose." Start-up of the project is scheduled for late 1995. -0- 8/11/93 /CONTACT: Michael G. Wright, president of First Reserve Gas Co., 214-373-1630; or Mark F. Roberge, project manager of Wild Goose Gas Storage, 415-291-0750/
CO: First Reserve Gas Co.; Wild Goose Gas Storage Co.; CanWest Gas
Supply Inc. ST: California, Texas, British Columbia IN: OIL SU: CON
PK-LH -- SF008 -- 1808 08/11/93 15:56 EDT