ENSTOR Expands Waha, Acquires Grama Ridge

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May 12, 2005

HOUSTON, Texas – ENSTOR, a unit of ScottishPower, announced today the acquisition of the Grama Ridge Gas Storage Facility in New Mexico from ConocoPhillips and the expansion of its proposed Waha Gas Storage and Transportation Facility development in west Texas.

“Our open seasons show that demand for gas storage is increasing as customers seek ways to deal with natural gas price volatility,” said Matt Morrow, ENSTOR’s president.  “ENSTOR is ready to meet the growing demand with the Grama Ridge purchase and by expanding our plans for the nearby Waha facility from the earlier announced 7.2 Bcf to 9.5 Bcf.”

ENSTOR also plans to expand the 4.5 Bcf Grama Ridge reservoir facility, which has operated since the early 1970s, to 6.0 BCF.  Grama Ridge sits within 80 miles of the Waha project and interconnects with El Paso, NGPL, and Northern Natural gas transmission systems.  Waha also interconnects with El Paso and Northern Natural. 

ENSTOR’s gas storage business also includes the Katy Storage and Transportation Facility in Katy, Texas. The Katy facility, located 20 miles west of Houston, has a working capacity of 21 Bcf.  Katy has been in operation for more than 10 years, has interconnects to 13 pipelines and serves gas storage capacity to a diversified customer base throughout the U.S. The storage business also includes the proposed Houston Hub and Transportation Facility in Liberty County, Texas. This salt dome project received nearly 11.5 Bcf of support during the open season. The project is in the process of filing permits for the 18 Bcf storage facility.

ScottishPower also owns the Alberta Hub.  In operation since 1997, the Alberta Hub is a major underground gas storage facility located 80 miles west of Edmonton, Alberta, Canada. It is connected to the largest pipeline in the province, TransCanada Pipelines Limited – Alberta System, which has the capability to access markets in California, the Pacific Northwest, Midwest, Northeast and all of Canada.  The storage facility currently serves producers, utilities, natural gas marketing companies and other customers.