Kinder invests $76 million

Kinder Morgan Energy Partners has announced plans to expand capacity at its Dayton natural gas storage field by 5.5 billion cubic feet.

Kinder Morgan Energy Partners has announced a major expansion project at the company’s Dayton natural gas storage field that will significantly increase capacity at the Liberty County, Texas, facility.

The project, which involves development of a new underground cavern, will add an estimated 5.5 billion cubic feet (Bcf) of incremental working gas storage capacity. The two existing storage caverns currently provide 4.2 Bcf of working gas capacity.

Drilling the well for the new cavern will begin later this month, with the additional capacity expected to be available in the spring of 2009 after the cavern is completed to its target size.

The process of creating storage space for natural gas involves injecting water to dissolve the salt formation. The $76 million initiative also includes additional compression, as well as dehydration and pipeline enhancements that will increase both injection and withdrawal capabilities at the complex.

KMP’s Texas Intrastate Pipeline system is currently comprised of more than 5,800 miles of pipeline with a peak transport capacity of about 5 Bcf/day and approximately 120 Bcf of natural gas storage capacity.