PAA Natural Gas Storage, LP (NYSE: PNG) today announced that it is conducting a non-binding Open Season for 2 billion cubic feet (BCF) of firm natural gas storage service to be available beginning in the second quarter of 2011 at its Pine Prairie salt-cavern storage facility in Evangeline Parish, Louisiana. PNG also announced that it is soliciting expressions of interest for firm natural gas storage service at Pine Prairie beginning in the second quarter of 2013 in order to assess market demand for additional expansions at Pine Prairie. PNG currently has 24 BCF of working gas capacity in service at Pine Prairie and an additional 18 BCF of capacity under construction. Pine Prairie is currently permitted for 48 BCF. Pine Prairie is located 50 miles from Henry Hub, has multi-cycle injection and withdrawal capabilities and connectivity to eight major pipeline systems that serve the northeastern, midwestern and southeastern natural gas markets. “We believe that Pine Prairie’s strategic location and operational flexibility offer distinct advantages to our customers and potential customers,” stated Dean Liollio, President of PNG. “The Open Season for capacity starting in 2011 and the request for expressions of interest for service starting in 2013 are components of executing our organic growth initiatives currently in progress. The feedback that we receive will help us continue to meet the demands of our expanding customer base.” By submitting a non-binding bid during the Open Season for capacity starting in 2011, participants will be expressing an indication of interest to contract for storage services based on the terms in their bid. PPEC expects to award the 2011 capacity to the winning bidder(s) shortly after evaluating all conforming bids. Expressions of interest for service starting in 2013 will be used by PNG for planning purposes. Interested parties should contact Richard Tomaski at 713-652-3669 or Ben Reese at 713-652-3678, or visit the Open Season section of Pine Prairie’s website www.pineprairieenergycenter.com. The Open Season will end at 2:00 pm Central on July 15, 2010. PNG is a publicly traded master limited partnership engaged in the development, acquisition, operation and commercial management of natural gas storage facilities. The Partnership currently owns and operates two natural gas storage facilities located in Louisiana and Michigan, which together have an aggregate working gas storage capacity of approximately 50 BCF. The Partnership’s general partner, as well as the majority of the Partnership’s limited partner interests is owned by Plains All American Pipeline, L.P (NYSE: PAA). The Partnership is headquartered in Houston, TX.
Forward Looking StatementsExcept for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, failure to implement or capitalize on planned internal growth projects; shortages or cost increases of power supplies, materials or labor; weather interference with business operations or project construction; the level of competition from other providers of natural gas storage services; general economic, market or business conditions; risks related to the development and operation of natural gas storage facilities; and other factors and uncertainties inherent in the transportation and storage of natural gas discussed in PNG's filings with the Securities and Exchange Commission.