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FERC vacates certificate for Crestwood Midstream unit's NY storage expansion

The Federal Energy Regulatory Commission removed its authorization from an Arlington Storage Co. LLC natural gas storage expansion project in New York.

The Dec. 21 order to vacate the Natural Gas Act certificate came in response to Arlington Storage's decision earlier this year to abandon the Gallery 2 expansion project at its Seneca Lake facility in Schuyler County, N.Y. In a notice to the commission, Arlington Storage, a subsidiary of Crestwood Equity Partners LP's Crestwood Midstream Partners LP, explained its decision by citing a lack of customer support. Arlington Storage had not started construction on the expansion when it moved to abandon the project.

The project would have converted two salt caverns used for liquefied petroleum gas storage to natural gas storage, increasing working gas capacity at the Seneca Lake facility from 1.45 Bcf of working gas to 2.00 Bcf. Crestwood can continue to use the salt caverns for liquid propane gas storage.

FERC approved the project in May 2014, but the developers encountered a delay in the permitting process at the New York State Department of Environmental Conservation. The project was also the focus of opposition from a group called We Are Seneca Lake. (FERC docket CP13-83)