Chevron Pipe Line Company Announces Keystone Expansion

Chevron Pipe Line Company announced today that it plans to expand its Keystone Gas Storage facility in West Texas by an additional 2 billion cubic feet (Bcf) for a total working gas capacity of 7 Bcf. The facility's withdrawal capability is 400 million cubic feet per day (mmcf/d) and injection capability is 160 mmcf/d. The expansion is expected to increase injection capability to 200 mmcf/d.

"The Keystone expansion demonstrates Chevron's continued commitment to the natural gas storage business, and Chevron Pipe Line is well positioned to help supply the region's increasing demand for natural gas," Rebecca Roberts, President of Chevron Pipe Line Company, stated.

The company placed a fifth cavern in service during the fourth quarter 2006. Completion of the facility's sixth and seventh caverns is expected in early 2010.

Keystone will hold an open season during the third quarter of 2007 to secure expressions of interest in firm gas storage services for the 2 Bcf of total capacity from the two proposed caverns. The project has received approvals and permits to develop these caverns from the Texas Railroad Commission.

Located in the Permian Basin production region, Keystone is a high deliverability salt cavern natural gas storage facility that connects to the El Paso Natural Gas, Transwestern Gas Company and Northern Natural Gas Company pipelines. These connections allow Keystone to serve customers and consumers in Texas as well as the Midwestern and Western interstate regions. Keystone has been in service since September 2002.

More information on Chevron Pipe Line Company is available at http://www.chevron-pipeline.com.

Interested parties should contact Anne Fiedler at 713-432-2459 for more information about Keystone's open season process or to obtain an information package.


Source: Chevron Pipe Line Company