NGL Storage
Our NGL and related product storage facilities are integral parts of our operations. Our underground storage wells are used to store mixed NGLs, NGL products and petrochemical products for customers and ourselves.
We operate our storage operations based on the needs and requirements of our customers in the NGL, petrochemical, heating and other related industries. We usually experience an increase in the demand for storage services during the spring and summer months due to increased feedstock storage requirements for motor gasoline production, and a decrease during the fall and winter months when propane inventories are being drawn down for heating needs.
We are developing a new natural gas storage cavern located on the Petal Salt Dome near Petal, Mississippi. The cavern is designed to store approximately 7.9 Bcf of natural gas, of which approximately 5.0 Bcf will be working gas capacity and 2.9 Bcf will be the base gas requirements needed to support minimum pressures. This expansion project was approved by the Federal Energy Regulatory Commission and is projected to commence operations during the second quarter of 2008. We have long-term, binding precedent agreements on the majority of the capacity.
The following table summarizes the gross working capacity of our primary storage assets and our ownership of such capacity (on a net basis in accordance with our ownership interest) by state at December 31, 2007.
| NGL and Related Product Storage Facilities by State | Usable Storage Capacity (MMBbls) |
|---|---|
| Texas(1) | 124.5 |
| Louisiana | 15.3 |
| Mississippi | 5.7 |
| Others (Arizona, Georgia, Iowa, Kansas, Nebraska, Oklahoma) | 9.4 |
| Total (2) | 154.9 |
(1) The amount shown for Texas includes 33 underground caverns with an aggregate useable storage capacity of approximately 100 MMBbls that we own jointly with Duncan Energy Partners. These caverns are located in Mont Belvieu, Texas.
(2) The 154.9 MMBbls of total useable storage capacity includes 20.8 MMBbls held under operating leases. The leased facilities are located in Texas, Louisiana and Kansas.