HOUSTON, May 19, 2010 (GLOBE NEWSWIRE) -- ENGlobal (Nasdaq:ENG), a leading provider of engineering and related project services, announced today that it has been selected by Merchant Energy Partners, LLC ("MEP"), a private natural gas storage developer based in Denver, Colorado, to provide front-end engineering and design services for Phase One of the East Cheyenne Gas Storage Project located in Logan County, Colorado (the "East Cheyenne Project").
ENGlobal has been engaged to design facilities associated with approximately 9.7 Bcf of storage capacity, including engineering and procurement services. The contract scope includes a compressor station, a gas processing facility, gathering lines, pipeline interconnects, and a metering station.
Construction of the East Cheyenne Project, which is estimated to have a total installed cost of $90 million, is expected to begin in June 2010 and to be completed by September 2011. The total contract value of the first phase of the project was not disclosed.William Harnisch, Senior Vice President – Engineering and Project Development and Partner of MEP, said, "The East Cheyenne Project, with total project acreage of approximately 6,000 acres, is needed to provide natural gas storage to meet anticipated market demand throughout the Midwest and Western United States. Once complete, the storage areas would have a total working gas inventory of approximately 18.9 billion cubic feet (Bcf). We are looking forward to working closely with ENGlobal as we begin the first phase of this very important project." Edward L. Pagano, Chief Executive Officer of ENGlobal Corporation, stated, "We are pleased to be working on Phase One of the East Cheyenne Project. ENGlobal has extensive experience providing cost effective project solutions for natural gas pipeline and storage facilities, with a full suite of services that includes feasibility studies, facility design, material procurement, construction management, right-of-way acquisition, permitting and inspection. We would like to thank MEP for its confidence in our pipeline expertise."