HOUSTON, TX--(Marketwire - March 22, 2010) - Icon NGS, LLC announced today that its wholly owned subsidiary, Delhi Gas Storage, LLC, has entered into an agreement with Atmos Pipeline and Storage, LLC, an indirectly wholly owned subsidiary of Atmos Energy Corporation (Atmos Energy), providing Delhi the exclusive option to acquire the rights to complete the development of the Fort Necessity natural gas storage project in Franklin Parish, Louisiana. Icon also announced that it has acquired the surface, storage, water, and brine disposal rights to lands on and around the South Tallulah Dome in Madison Parish, Louisiana.
The combined projects would provide Icon NGS with up to 45 BCF of gas storage capacity serving the pipelines in and around the Delhi Hub located in northern Louisiana. The Delhi Hub is emerging as a critical point in the natural gas transportation grid, serving growing natural gas supplies from the Haynesville, Barnett and Fayetteville shales, the Gulf of Mexico and Gulf Coast liquefied natural gas facilities. The Delhi Hub provides access to multiple premium markets, including those located in the Midwest, Ohio Valley, Northeast and Southeast.
The diversity of supply sources and end-use markets served by the Delhi Hub supports the need for flexible, high-deliverability, multi-cycle gas storage services providing enhanced transportation services and market liquidity. Icon NGS plans to offer a full range of firm and interruptible storage, balancing, park and loan, and wheeling services from both salt dome projects.
Atmos Energy conducted a non-binding Open Season for the Ft. Necessity project in June of 2008 and received bids in excess of the capacity offered at the time. Icon NGS intends to hold an open season for the remaining capacity in Fort Necessity's first cavern within the next 30 days. The project will charge market-based storage rates for firm and interruptible storage services. The first cavern is expected to commence commercial operations in the third quarter of 2012. As part of the transaction with Icon NGS, an affiliate of Atmos Energy agreed to purchase firm storage service for a portion of the first cavern of Fort Necessity.
"Icon NGS is extremely pleased to be moving forward with our ongoing development efforts for Fort Necessity and South Tallulah Gas Storage," said Andy Lang, President and Chief Executive Officer of Icon NGS. "Our storage projects are ideally situated on the North-South and East-West pipeline corridors of northern Louisiana, supporting the development of Delhi Hub as a key national trading point. With the strong financial support of Quantum Energy Partners, we look forward to the construction and ultimate commercialization of these projects. These projects will create jobs in Franklin and Madison Parishes during both the construction and operational phases, and will result in significant capital investment in Northeast Louisiana," Lang added.
In June 2009, the Federal Energy Regulatory Commission issued the Fort Necessity Gas Storage project a Certificate of Public Convenience and Necessity (Doc. No. CP09-22) to construct 15 BCF of working gas capacity with interconnections to Columbia Gulf Transmission, Tennessee Gas Pipeline (800 Line), ANR Pipeline, and Regency Intrastate. Atmos Energy subsequently filed an application with the FERC in September 2009 to transfer the certificate authority to one of its subsidiaries, Fort Necessity Gas Storage, LLC. As currently permitted, Fort Necessity will provide direct access to the Delhi Hub through storage injection and withdrawal rates up to 500 MMCF per day and 1,500 MMCF per day, respectively.
Located just 15 miles east of the Delhi Hub, South Tallulah is adjacent to the pipeline corridor containing Mid-Continent Express, Southeast Supply Header, Gulf Crossing and Columbia Transmission's Vicksburg lateral. Upon completion of ongoing initial engineering and development activities, Icon NGS intends to conduct an open season and initiate the FERC 7(c) certification process for the project. South Tallulah Gas Storage is expected to commence commercial operations in 2013.
These projects are dependent upon securing appropriate local incentives to support future investments.
Icon's projects are ideally situated on the North-South and East-West pipeline corridors at Delhi. (See attached map.)
About Icon NGS, LLC
Icon NGS, LLC is a subsidiary of Quantum NGS Holdings, LLC, a partnership between Quantum Energy Partners, a leading investment firm specializing in the energy industry with over $5.7 billion in capital under management, and Dr. Larry W. Bickle. Icon NGS' team collectively developed, operated, financed or acquired more than 200 BCF of working gas storage capacity. This experience includes the successful development and operation of numerous natural gas storage projects, including Bobcat, Egan, Kirby Hills, Lodi, Moss Bluff, and NorTex.
To learn more about Icon NGS and the projects in this announcement, please visit Icon NGS' website at www.icon-ngs.com. For inquiries, please contact Andy Lang at (713) 403-6464 or alang@icon-ngs.com.
Contact Information:
For inquiries, please contact Andy Lang at (713) 403-6464 or .
