ATGS, LLC affiliate Escondido Gas Storage and Marketing (Escondido) is currently developing a 10 Bcf storage facility located approximately 55 miles south east of San Antonio, Texas in Live Oak and Karnes Counties. The Escondido gas storage facility will be constructed in the depleted Atkinson Gas Field and will initially have 10 Bcf of working capacity. Design plans include a beginning injection rate of 500 MMcf/d and a beginning withdrawal rate of 500 MMcf/d, allowing 4.5 - 5 cycles per year. Storage capacity could be expanded depending on market interest.
Escondido’s potential gas pipeline connections include CPS Energy (30”), Enterprise Products (24”+20”), Houston Pipe Line Corp. (30”), and Kinder Morgan Texas Pipeline (30”). Escondido will offer intrastate storage services pursuant to the rules and regulations of the TRC. Escondido may also file a Section 311 with the Federal Energy Regulatory Commission to provide firm and interruptible storage service and interruptible hub services to interstate markets.
The Escondido Project will be located in south central Texas, approximately 65 miles north of the Agua Dulce production hub in Nueces County. The Agua Dulce hub is connected to at least two pipelines that could be connected to the Escondido project header system; the project will be the nearest storage facility to that hub.
Through Escondido’s potential pipeline connections, the project will access market and production hubs in Texas, along the Gulf Coast, and into the mid-western and eastern United States. The Escondido project is ideally located to mitigate transportation and storage constraints that will occur as new Gulf Coast LNG terminals become operational. Further, the counties surrounding the project are home to 27 gas-fired electric generation plants, most of which are served by one or more of the pipelines accessible to the Escondido project.
Escondido will provide a cost effective way to balance seasonal natural gas supply and demand and provide a physical hedge against supply disruptions and price volatility. With access to multiple interstate and intrastate pipelines, Escondido’s state of the art facility will provide natural gas customer supply stability and market opportunity.