Nicor's subsidiary gets deal in California

NAPERVILLE Central Valley Gas Storage LLC, a subsidiary of Nicor Inc., today said it the California Public Utilities Commission gave its approval to construct and operate a natural gas storage facilities in Colusa County Calif.

Central Valley Gas Storage specializes in gas storage services in California markets.

The Central Valley natural gas storage project is a high deliverability depleted reservoir that will provide services tailored to customers. The field is in Northern California and will have an interconnect into Pacific Gas and Electric Company's gas transmission system.

The interconnect point will provide access to west coast natural gas and power markets. Nicor Enerchange LLC, a subsidiary of Nicor Inc., will serve as marketing administrator for Central Valley.

Central Valley plans to start construction in late November, subject to receiving all of the requisite permits. Construction is planned to be completed during the fourth quarter of 2011, with firm storage services commencing on April 1, 2012.

“We are pleased to have received approval from the California Public Utilities Commission to construct and operate this natural gas storage facility in Colusa County, Steve Cittadine, president of Central Valley, said in a statement. “We believe Central Valley's geographic location and service profile offer an excellent complement to new infrastructure being developed to serve west coast markets and will facilitate more effective use of natural gas as renewable energy mandates take shape in California.