update on lodi and wheeler ridge storage projects western undeterred by grueling regulatory process
expressing frustration but continuing its resolve , texas - based western hub
properties is ironing out some " technical issues " of financing with
california regulators and now expects to start construction in february on
its delayed lodi gas storage field in northern california .
the merchant storage project will be operating by this time next year , said
western hub ' s california - based manager , jim fossum , who added that with
faster approvals , the project could have been in service during this summer ' s
electricity generating crunch and the current gas and power shortages .
despite the regulatory struggle , he said the company still plans to go
through with its other california storage project near bakersfield and the
natural gas hub called wheeler ridge . western has acquired leases on the
property it needs and will start more detailed engineering of the proposed
site over the first three to six months of next year . the company intends to
make a filing with state regulators in summer of 2001 .
in both the approved lodi project ( see daily gpi , may 19 ) and the proposed
wheeler ridge storage field , western is not concerned about lining up
customers , said fossum . the projects are not contingent on contracts , he
said . " now that we are a bona fide ( certified plant ) utility under the
california public utilities commission , we are getting some technical things
worked out with the commission staff and nailing down the last small pieces
of property , fossum said . " everything is basically ready to go at lodi "
" we have to file with them documents that verify certain aspects of the
project ' s financing . we can ' t move ahead with the financing until the cpuc
approves it .
" if we had not encountered all of the roadblocks that we have had , we could
have helped with the problems this last summer , and we could be helping with
problems right now . " he added that the project would not be operational in
time to have any impact on the upcoming summer electricity demand and
corresponding heavy natural gas demand to fuel power plants .
lodi and the wheeler ridge storage project are being designed as
high - deliverability storage facilities . lodi will have about 9 bcf of working
capacity , building to 12 bcf . initially , fossum said , lodi should have about
400 mmcf / d injection capability and 500 mmcf / d withdrawal .
in the southern half of the state , western for some time has been doing
reservoir studies near wheeler ridge and now has a " couple of reservoirs that
we think might work , " fossum said . " we ' re in the preliminary planning phase . "
the wheeler ridge project would have an ultimate working capacity of 12 to 16
bcf and similar 500 mmcf / d deliverability at its peak . he said western hopes
to have something operational in the wheeler ridge area by the end of 2002 .
update on lodi and wheeler ridge storage projects
western undeterred by grueling regulatory process
expressing frustration but continuing its resolve , texas - based western hub
properties is ironing out some " technical issues " of financing with
california regulators and now expects to start construction in february on
its delayed lodi gas storage field in northern california .
the merchant storage project will be operating by this time next year , said
western hub ' s california - based manager , jim fossum , who added that with
faster approvals , the project could have been in service during this summer ' s
electricity generating crunch and the current gas and power shortages .
despite the regulatory struggle , he said the company still plans to go
through with its other california storage project near bakersfield and the
natural gas hub called wheeler ridge . western has acquired leases on the
property it needs and will start more detailed engineering of the proposed
site over the first three to six months of next year . the company intends to
make a filing with state regulators in summer of 2001 .
in both the approved lodi project ( see daily gpi , may 19 ) and the proposed
wheeler ridge storage field , western is not concerned about lining up
customers , said fossum . the projects are not contingent on contracts , he
said . " now that we are a bona fide ( certified plant ) utility under the
california public utilities commission , we are getting some technical things
worked out with the commission staff and nailing down the last small pieces
of property , fossum said . " everything is basically ready to go at lodi "
" we have to file with them documents that verify certain aspects of the
project ' s financing . we can ' t move ahead with the financing until the cpuc
approves it .
" if we had not encountered all of the roadblocks that we have had , we could
have helped with the problems this last summer , and we could be helping with
problems right now . " he added that the project would not be operational in
time to have any impact on the upcoming summer electricity demand and
corresponding heavy natural gas demand to fuel power plants .
lodi and the wheeler ridge storage project are being designed as
high - deliverability storage facilities . lodi will have about 9 bcf of working
capacity , building to 12 bcf . initially , fossum said , lodi should have about
400 mmcf / d injection capability and 500 mmcf / d withdrawal .
in the southern half of the state , western for some time has been doing
reservoir studies near wheeler ridge and now has a " couple of reservoirs that
we think might work , " fossum said . " we ' re in the preliminary planning phase . "
the wheeler ridge project would have an ultimate working capacity of 12 to 16
bcf and similar 500 mmcf / d deliverability at its peak . he said western hopes
to have something operational in the wheeler ridge area by the end of 2002 .