SOURCE: Merchant Energy Holdings

Merchant Energy Holdings

March 07, 2013 15:30 ET

East Cheyenne Gas Storage Completes Successful Open Season -- Oversubscribed by 2.5X Capacity Offered

HOUSTON, TX--(Marketwire - Mar 7, 2013) - East Cheyenne Gas Storage, LLC (ECGS), a natural gas storage facility owned by Merchant Energy Holdings, LLC, recently concluded its non-binding open season for firm, highly deliverable, multi-cycle (HDMC) storage capacity at its operational storage facility in Logan County in Northeastern Colorado. Market demand has exceeded the available 8 BCF of capacity by over two-and-a-half times. ECGS has received bids from a multitude of companies for service at the ECGS interconnect with Trailblazer Pipeline, into REX pipeline and for storage services directly at the Cheyenne Hub. ECGS is the only market-based independent storage operator with direct access to the Cheyenne Hub and growing Front Range market.

Andy Lang, CEO of Merchant Energy Holdings, stated, "We are pleased with the overwhelming market interest in independent storage that will directly serve the Cheyenne Hub. We intend to continue discussions with the top bidders in this open season to structure new firm storage agreements which will begin during the second quarter of 2013."

ECGS is currently in its second phase of expansion, which will increase the working gas capacity of the field and will significantly increase the injection/withdrawal capability to over 200 MMcf/d. The facility is directly interconnected with Trailblazer Pipeline and has access to CIG, WIC, REX, and PSCO at the Cheyenne Hub.

For additional information about ECGS, interested parties should contact Scott Smith (ssmith@mehllc.com) at 713-403-6472, or Kevin Legg (klegg@mehllc.com) at 720-351-4004. You may also visit our website at www.eastcheyenne.com.

Merchant Energy and East Cheyenne Gas Storage
Merchant Energy Partners, LLC (www.merchantenergy.com) is a Houston, Texas-based company owned by Quantum NGS Holdings (www.quantumep.com). Merchant Energy is focused on the development, construction and operation of natural gas storage projects throughout the United States.

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