Merchant Energy Partners Breaks Ground for East Cheyenne Gas Storage Facility in Northeastern Colorado

DENVER, May 18, 2011 /PRNewswire/ -- Merchant Energy Partners, LLC, will host a groundbreaking ceremony on May 23, 2011, for its East Cheyenne Gas Storage (ECGS) natural gas storage project near Sterling, Colorado. Industry and government officials as well as Colorado Governor John Hickenlooper will be in attendance.  The groundbreaking is at 11:00 a.m. MDT at the site of the ECGS project, one-half mile east of 17931 CR 72 in Peetz, Colorado. Governor Hickenlooper will deliver remarks, and the event will be followed by a private reception at the Peetz Community Center.

"This groundbreaking marks a historic event for Colorado, the Front Range, and mid-continent natural gas markets served by the Rockies," said Andy Lang, president and CEO of Merchant Energy. ECGS is FERC certificated for up to 18.9 Bcf in working gas capacity. Natural gas storage plays a key role in supporting the use of natural gas for clean air initiatives that have been initiated through Colorado's Clean Air and Clean Jobs legislation. ECGS will be the first independent storage facility in the Front Range and will help optimize the pipeline capacity that transports gas out of the Rockies.

Construction of the facility is expected to begin within the coming weeks, with full build-out to take place over the next few years. Merchant Energy anticipates that the $300 million ECGS project will have working gas injection this fall and full cycling capabilities beginning next year.

"For several years now, we have worked toward project construction and we are excited to begin providing storage services," said Lang. "Initially, we'll serve customers off Trailblazer Pipeline and plan to interconnect to the Rockies Express Pipeline. This project is a great boost for Colorado's economy, and will result in the hiring of up to 200 workers during the construction phase—100 in 2011 and 100 more in 2012—and up to 20 full-time hires long term. We are honored to celebrate this exciting milestone with Governor Hickenlooper and the community of Logan County."

About Merchant Energy and East Cheyenne Gas Storage

Merchant Energy Partners, LLC (www.merchantenergypartners.com) is a Houston, Texas-based company (with a satellite office in Littleton, Colorado) owned by Quantum NGS Holdings (www.quantumep.com), also based in Houston. Merchant Energy is focused on the development, construction and operation of natural gas storage projects throughout the United States. Learn more at www.eastcheyenne.com.

Contact:
Kevin Legg
Merchant Energy Partners, LLC
10901 West Toller Drive, Suite 200
Littleton, Colorado 80127
(720) 351-4004
[email protected]

SOURCE Merchant Energy Partners, LLC