Chevron Announces Natural Gas Storage Project in Colorado
Project to help maintain reliable U.S. natural gas supplies
SAN RAMON, Calif., Nov. 8, 2005 -- Chevron Global Gas, a division of Chevron U.S.A. Inc., today announced it has filed an application with the Federal Energy Regulatory Commission (FERC) as part of the permitting process to build an underground natural gas storage facility to provide critical infrastructure necessary to meet the growing demand for natural gas in the United States.
The project, named Windy Hill, includes the construction and operation of an underground natural gas storage facility in northeastern Colorado near the town of Brush in Morgan County. Windy Hill will include four salt storage caverns with total working natural gas capacity of 6 billion cubic feet.
John Gass, president of Chevron Global Gas, said, "Today's announcement underscores our focus on business opportunities to build upon our already strong position as a natural gas supplier in the United States. Our priority is to finalize the federal and local permitting process necessary for us to begin activities as early as possible.
"As the first bedded-salt gas storage facility in Colorado, the Windy Hill project is strategically positioned to add critical high deliverability storage capacity for producers in the Rockies and to help maintain reliable supplies of natural gas for the growing Denver market," Gass added. "Natural gas represents one of the energy industry's greatest growth opportunities. Natural gas is expected to outpace demand for crude oil over the next two decades and is fast becoming the fuel of choice for homes and industry."
Chevron filed the Windy Hill application with the FERC on Nov. 2, 2005. Construction of the first two storage caverns is anticipated to start as early as 2006, or as soon as the project receives authorization from the FERC. The company anticipates providing service from the first two storage caverns beginning in 2008, and the third and fourth storage caverns in 2010.
Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in over 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.
Chevron is one of the world's largest producers and marketers of natural gas. Among other natural gas assets, Chevron owns Sabine Pipe Line LLC, a 131-mile interstate pipeline, and is also the owner and operator of the Henry Hub; Chandeleur Pipe Line Company, an interstate gas transmission system; Bridgeline Holdings, L.P., an integrated intrastate pipeline and storage system, with over 1,000 miles of pipelines and 12 bcf of storage capacity in Louisiana; and Unocal Keystone Gas Storage, LLC, a bedded-salt natural gas storage facility in Texas. In addition, Chevron operates and owns a 93 percent working interest in the Aitken Creek Gas Storage Reservoir in British Columbia, Canada, with 48 bcf of storage capacity and deliverability exceeding 400 million cubic feet per day. The company also has a 43 percent non operating working interest in the Alberta Hub in Canada, a natural gas storage facility located near Edson, Alberta, with 37 bcf of capacity.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Some of the items discussed in this press release are forward-looking statements about Chevron's natural gas strategy in the United States. Words such as "expected," "planned" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates, and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are unknown or unexpected problems in the resumption of operations affected by Hurricanes Katrina and Rita and other severe weather in the Gulf of Mexico; changes in the demand for and supply of crude oil and natural gas; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; inability or failure of the company's joint-venture partners to fund their share of project expenditures; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: November 2005