d/b/aNW Natural obtained a notice to proceed for its fromPortland General ElectricCo.

Through theproject, NW Natural would be able to provide long-term no-notice undergroundgas storage services through its facilities in Mist, Ore., for Portland GeneralElectric's Beaver and Port Westward generating plants, according to an Oct. 3news release.

Theexpansion, estimated to cost about $128 million, would add a reservoir with upto 2.5 Bcf of available storage, a new compressor station with a 120 MMcf/dcapacity and a 13-mile pipeline to connect to Portland General Electric'sBeaver and Port Westward plants near Clatskanie, Ore.

"Addingthis storage service further enables us to adjust quickly when renewable energy— like wind and solar — rise and fall with natural variability. And it alsomeans that on peak demand days, our customers benefit from increasedreliability," said Jim Piro, president and CEO of Portland GeneralElectric. "Thistype of flexibility is essential as we move toward 50% renewable energy in ourresource mix by 2040."

The projectis expected to begin service by winter of 2018 to 2019.