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Electric utilities

Bay Gas Storage Co. Ltd. Secures Multiyear Agreement with Florida Power & Light

Strategic Insights

— 1 min read

Florida Power & Light, the largest electric utility in Florida, has reached a multiyear agreement with Bay Gas Storage Co. Ltd., a subsidiary of EnergySouth, Inc., to provide natural gas storage services from the company's third underground storage cavern. This agreement is a significant milestone for Bay Gas Storage, which is currently developing its third cavern and expects it to be in service by summer 2007. The new agreement strengthens the relationship between Bay Gas Storage and Florida Power & Light, solidifying the company's position as a reliable supplier of natural gas storage services.

Key Takeaways:

  • Bay Gas Storage Co. Ltd. has entered into a multiyear agreement with Florida Power & Light to supply natural gas storage services from its third underground storage cavern.
  • The new agreement will add 5.0 Bcf of storage capacity, along with injection and withdrawal capacities of 225 MMcf and 500 MMcf per day, respectively.
  • The third cavern is currently under development and is expected to be in service by summer 2007.
  • Bay Gas Storage currently operates two salt-dome natural gas storage caverns, with a combined working gas capacity of approximately 6.0 Bcf, and has direct pipeline interconnects with several major pipelines.
  • The company's two existing caverns have injection and withdrawal capacities of 200 MMcf and 610 MMcf per day, respectively, and are currently fully subscribed on a firm basis.
  • Greg Welch, President and Chief Operating Officer of Bay Gas Storage Co., Ltd., stated that reaching an agreement with FPL is another significant milestone for the company, reinforcing its location, capability, and proven track record of service.
  • The agreement with FPL strengthens the relationship between Bay Gas Storage and Florida's largest electric utility.

Statistics:

  • Bay Gas Storage's two existing caverns have a total working gas capacity of 6.0 Bcf.
  • The storage facility has injection and withdrawal capacities of 200 MMcf and 610 MMcf per day, respectively.
  • The third cavern expansion will add 5.0 Bcf of storage capacity.
  • Injection and withdrawal capacities of the third cavern will be 225 MMcf and 500 MMcf per day, respectively.
  • The company expects its third cavern to be in service by summer 2007.

Sources:

  • Bay Gas Storage Co. Ltd. press release (no specific date mentioned)
  • EnergySouth, Inc. NASDAQ listing (no specific date mentioned)
  • Greg Welch, President and Chief Operating Officer, Bay Gas Storage Co., Ltd., personal statement.

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