Ryckman Creek Resources, a wholly-owned subsidiary of Peregrine Midstream Partners, has won the approval to use the Federal Energy Regulatory Commission’s pre-filing review process for its Ryckman Creek Gas Storage Project, a new interstate natural gas storage development in Uinta County, Wyoming, near the highly liquid Opal Hub.
The project involves converting an existing partially-depleted oil and gas field, known as the Ryckman Creek Nugget Unit, into a gas storage field. First-phase working gas capacity is being designed for 25Bcf of high-deliverability, multi-cycle (HDMC) gas storage. Phase I will include maximum injections exceeding 200,000Mcfd and maximum withdrawals of approximately 360,000Mcfd.
The project will be subject to regulation as an interstate natural gas storage facility under the Natural Gas Act. Ryckman Creek Resources intends to file an application for certificates of public convenience and necessity in fall 2010 to construct, own and operate the project, as well as to charge market-based rates for the services it will offer.
Chuck Sawyer, vice president of Peregrine Project Development, said: “Ryckman Creek is ideally located near the Opal Hub where it can serve a large number of producers, shippers and markets.
“The project’s natural gas storage services will meet existing and anticipated demand for firm, peak day, load following, balancing, and seasonal storage services to natural gas markets throughout the Midwest, Rocky Mountains and Western US.”
Ryckman Creek plans to conduct a non-binding Open Season to gauge prospective customer interest during fall 2010. Construction on the project will start upon receipt of the certificate, anticipated in spring 2011, with an in-service date by April 2012.