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April 26, 2005
Dallas, Texas – The Federal Energy Regulatory Commission (FERC) Wednesday approved the construction and operation of a new natural gas storage facility in northeast Mississippi by Caledonia Energy Partners LLC. Nicor Enerchange, L.L.C., a subsidiary of Nicor Inc. will serve as the marketing administrator for the Caledonia Storage Field.
Located in Monroe and Lowndes Counties in Mississippi, the facility will have a direct interconnect with Tennessee Gas Pipeline. It is expected to be in full operation by April 2006 with construction expected to begin this spring. Caledonia storage will provide more than 11 Bcf of working storage capacity. With injection and withdrawal rates of 260 MMcf/day and 330 MMcf/day, Caledonia Storage will offer a service that creates four cycles of flexibility on an annual basis.
"We are pleased with obtaining FERC approval, which was a significant step in the regulatory process," said Jim Goetz, president, Caledonia Energy Partners. "The Caledonia Storage Field is strategically located on the pipeline grid and offers its customers flexible storage at competitive prices."
Nicor Enerchange, L.L.C. will provide the marketing of firm and interruptible storage services for the Caledonia Storage Field under a long term marketing agreement.
For detailed information, potential customers are encouraged to visit the company's Web site, www.caledoniastorage.com, and/or call the following representatives:
About Caledonia Energy Partners
Caledonia Energy Partners is led by two industry veterans with combined experience of more than 50 years in the energy industry. Their primary business focus is on the exploration and production of natural gas and crude oil along with the development, installation and management of midstream assets.
About Nicor Enerchange, L.L.C.
Nicor Enerchange, L.L.C. consists of two separate divisions, Nicor Enerchange Trading and Nicor Enerchange Hub Administration. It is an affiliate of Nicor Inc. (NYSE: GAS), a holding company and member of the S&P 500 whose principals businesses are Nicor Gas, one of the nation's largest natural gas distribution companies, and Tropical Shipping, a containerized shipping business serving the Caribbean region. Nicor also owns and has an equity interest in several energy-related businesses. For more information, visit the Nicor Web site at www.nicor.com.
Caution Concerning Forward-Looking Statements
This document includes certain forward-looking statements about the expectations of Nicor Inc. ("Nicor") and Caledonia Energy Partners LLC ("Caledonia") and their respective subsidiaries and affiliates. Although Nicor and Caledonia believe these statements are based on reasonable assumptions, actual results may vary materially from stated expectations. Such forward-looking statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "expect," "intend," "may," "planned," "potential," "should," "will," "would," "project," "estimate," or similar phrases. Actual results may differ materially from those indicated in Nicor's and Caledonia's forward-looking statements due to factors that could cause materially different results including, but not limited to, construction rates and costs; weather conditions; natural gas and other fuel prices and demand; inventory valuation; economic and market conditions; energy conservation; legislative and regulatory actions; significant unplanned capital needs; performance of major suppliers and contractors; labor relations; and acts of terrorism. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this filing. Nicor and Caledonia undertake no obligation to publicly release any revision to these forward-looking statements to reflect events or circumstances after the date of this release. |
