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Falcon Gas Storage plans new HDMC gas storage hub in the Southeast U.S.


Houston, TX, April 2, 2003 — Falcon Gas Storage Co. Inc. is developing a new high-deliverability, multi-cycle (HDMC) natural gas storage hub in the Southeast U.S., which is scheduled to be in service during the fourth quarter of 2004.

Located in Mobile County, Alabama, the MoBay Storage Hub plans direct connections to these pipelines serving the Florida and Southeast markets: Transco Mobile Bay Lateral, Gulf South Mobile Bay Lateral, Gulfstream Natural Gas System at Gulfstream’s Station 100, and Florida Gas Transmission Mobile Bay Lateral.

“All of these pipelines are within a mile and a half of Falcon’s MoBay Storage Hub project, which consists of a series of marginally producing and depleted multi-reservoir gas fields with extraordinary HDMC gas storage capabilities,” said Mark Fullerton, Falcon’s Project Manager for the MoBay Storage Hub.

“These high-performance, dry gas reservoirs, which Falcon acquired late last year, are ideal for timely, low-cost storage development and expansion because their ‘on-the-shelf’ capacity doesn’t require the long lead-time leaching and cavern creation that is required for salt cavern storage development. There are no other gas storage hubs serving the densely populated Southeast production and market areas that are as strategically located as our MoBay Storage Hub, which will give our customers tremendous flexibility and add a needed source of swing supply into the Florida and Southeast markets as well as a backstop for weather-related gas supply outages.”

Once developed, the MoBay Storage Hub initially will offer 20 Bcf of working gas capacity along with 450,000 Mcfd of injection and withdrawal capability. Falcon plans to expand the project in phases up to a total of 60 Bcf of working gas capacity with up to 1 Bcfd of injection and withdrawal capability in order to accommodate increased market demand for storage in the Florida and Southeast markets.

Falcon will hold an open season from April 10, 2003 through April 24, 2003 for MoBay Storage Hub capacity. More information on the MoBay Storage Hub project and the upcoming open season is available through the Falcon Web site: http://www.falcongasstorage.com or from Mark Fullerton at 713.961.3204 ([email protected]).

In addition to the MoBay Storage Hub, Falcon also is developing the Wyckoff Gas Storage Project through its Greyhawk Gas Storage Company joint venture in Steuben County, New York, to serve the Northeastern U.S. Falcon is accepting capacity bids for Wyckoff until 5:00 p.m. April 14, 2003. Interested parties should contact Edmund Knolle at 713.961.3204 ([email protected]) for further information and a bid package. Bid packages also may be downloaded from the Greyhawk Web site:

http://www.falcongasstorage.com/greyhawk.htm.

About Falcon Gas Storage Company, Inc.

Houston-based Falcon Gas Storage Company is one of the largest independent owners and operators of high-deliverability, multi-cycle natural gas storage capacity in the United States. Falcon is the manager of Greyhawk Gas Storage Company, LLC, a joint venture between Falcon and Emera, Inc. In addition to its joint interest in Greyhawk, Falcon is the largest privately-owned storage provider in Texas with more than 20 Bcf of working gas storage capacity and in excess of 500,000 MMBtu/d of peak-day deliverability capability serving the Dallas-Ft. Worth and North Texas markets. Visit Falcon at www.falcongasstorage.com.