NUI, Duke units to build fast withdrawal gas storage


by the OGJ Online Staff

HOUSTON, Apr. 30 -- NUI Corp., Bedminster, NJ, and a unit of Duke Energy Corp. Monday reported an agreement to enlarge to 10 bcf from 1.1 bcf a natural gas storage facility that will feature the fast-fill and withdrawal capabilities associated with salt cavern storage.

The Saltville, Va. storage field will be jointly developed by NUI's Virginia Gas Co. and a subsidiary of Duke Energy Gas Transmission (DEGT). Financial details were not disclosed, but subsidiaries of NUI and DEGT have agreed to basic terms of the partnership and to create a limited liability company, Saltville Gas Storage Co. by May 15.

The agreement calls for expansion of the storage facility and its connection to DEGT's East Tennessee Natural Gas (ETNG) mainline system. At full capacity, the Saltville storage field will be able to deliver up to 500 MMcfd to area markets.

NUI CEO John Kean Jr. said the proposed storage facilities can play a major role in satisfying the rapidly growing demand for natural gas in the region, including significant demand from local distribution companies and power plant projects.

Development of the Saltville facility is the next step in implementing NUI's business strategy of creating strategically located energy-trading hubs through its wholesale energy trading arm, NUI Energy Brokers, Kean said. The hubs will allow the NUI, which operates gas utilities in seven states on the eastern seaboard, to capitalize on the energy supply, wholesale trading, and portfolio management opportunities arising in rapidly developing regions, he said.

"Our energy trading strategy focuses on acquiring critical capacity in areas where the demand for natural gas and power generation provides a unique opportunity to capitalize on our trading and energy management skills,'' Kean said. "By expanding the Saltville storage field, NUI will further bolster its presence in the mid-Atlantic markets and be positioned to expand its natural gas trading and wholesale activities in this region.''

The transaction is subject definitive agreements and various state and federal regulatory approvals.

Sponsored by FLSmidth

Related Articles

Video: Duke Energy acquires Halifax Solar Project in North Carolina

Duke Energy Renewables (NYSE: DUK) has acquired a 20-MW solar project in Roanoke Rapids, North Carolina, from Geenex and ET Solar Energy Corp.

Duke Energy completes ash excavation at W.S. Lee Steam Station

Duke Energy (NYSE: DUK) has submitted filings, to state regulators, outlining additional ash excavation plans for its W.S. Lee Steam Station in Belton, South Carolina.

Follow Power Engineering on Twitter
Latest News

MHPS to supply M501J gas, steam turbines to new combined-cycle power plant in Korea

Mitsubishi Hitachi Power Systems (MHPS), jointly with Marubeni Corp., has received an order f...

Business leaders throw support behind coal plant proposal

Business leaders on Thursday outlined the economic devastation they say could come if New Mex...

TVA seeks public comment for future coal ash storage at Bull Run

The Tennessee Valley Authority (TVA) is asking for public input on plans to expand dry onsite...

California Public Utilities Commission Approves NRG Energy’s Carlsbad Energy Center

California Public Utilities Commission (CPUC) has approved the SDG&E Power Purchase and T...

Vermont joins international effort to fight climate change

Gov. Peter Shumlin says Vermont has signed on to what he called a first-of-its-kind agreement...

Products May 2015

Callaway Energy Center's Replacement Reactor Vessel Closure Head Project

Replacing heavy equipment is one way utilities can extend the life and increase the reliabili...

Managing CCRs and Process Water: Why Handling Bottom Ash Wet May Remain The Best Option

The U.S. coal-fired electric generation industry once again finds itself in the crosshairs of...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free NDT Job Training to Vets, Disadvantaged Young Adults

MIC President Marybeth Miceli Named to AATA Board of Directors; AATA to Provide Free ND...

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Alexium Anticipates Potential Addressable Revenue of More Than US$10M for 2015

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tech Talent

Upcoming Greenhouse Webinar Teaches Companies How to Engage Engineers in Hiring Top Tec...

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Perma-Fix Environmental Services to Present at the Marcum MicroCap Conference

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possible Delisting

Blue Earth Receives Notice From NASDAQ That the Company Is No Longer Subject to a Possi...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>