Falcon Gas Storage successfully leases storage capacity

Pipeline & Gas Journal, May, 2009

Falcon Gas Storage Company, Inc. announced that all of the available gas storage capacity at its Worsham-Steed and Hill-Lake Gas Storage facilities in North Texas has been leased successfully as a result of an open season conducted during February.

"Falcon offered 6 Bcf of storage capacity under one- and two-year contracts starting April 1, 2009," said Marketing Vice President John Holcomb. "We received firm bids for about 20 Bcf from nine companies. The prices we got for this service are as good as we've ever done. Clearly, gas storage service in North Texas continues to be in high demand despite poor economic conditions nationwide."

Holcomb attributes Falcon's successful open season in this environment to continued strong primary storage value drivers--seasonal price spreads and volatility--and decreased costs to store gas, including fuel, taxes and interest rates.

Falcon's 35 Bcf of storage capacity in North Texas is fully contracted until next year, but the company also offers other storage services, such as seasonal park and loan and summer load following and hourly balancing (LFHB), designed to balance daily gas flows with hourly power dispatch.