Merchant Energy Partners will begin construction at the $300m East Cheyenne Gas Storage (ECGS) facility in Colorado, US.

The proposed facility has been certified by the US Federal Energy Regulatory Commission to accommodate 18.9 billion cubic feet in working gas capacity.

ECGS project will have working gas injection this year and full cycling capabilities beginning next year.

Merchant Energy president and CEO Andy Lang said the company will provide storage services off Trailblazer pipeline initially and plans to interconnect to the Rockies Express pipeline.

The storage facility near Sterling will help optimize the pipeline capacity that transports gas out of the Rockies.

Merchant Energy Partners, owned by Quantum NGS Holdings, is focused on the development, construction and operation of natural gas storage projects in the US.