Blue Lake/Cold Springs complex adds 14bcf capacity
Read more: Local, Economy
BLUE LAKE TOWNSHIP -- It's already one of the largest natural gas storage facilities in North America, but the Blue Lake/Cold Springs complex in Kalkaska County is growing.
ANR Pipeline Company, and parent-company TransCanada, dedicated the new Cold Springs One section during a Thursday morning ceremony. The 13-acre expansion comes after three years of planning and construction.
"We drilled six new wells and added 14 billion cubic feet of capacity, so in the relative scheme of things in North America those are fairly small numbers but in terms of Michigan the addition is fairly sizeable," said Rick Gentges, Director of Reservoir Services for ANR-TransCanada.
The new section will allow the complex to produce up to 300 million cubic feet of natural gas per day. It will also expand the available total storage space to 25 billion cubic feet.
The new wells are located on 13 surface acres of land at the complex, consuming 155 acres underground. During the summer months TransCanada injects gas underground into storage wells located a little more than a mile below the surface. Come winter, they pull it out and deliver to the market. By doing this the company says it can keep down the cost consumers pay to heat their homes.
"Storage actually serves to eliminate a lot of the volatility and the prices in the market so that's exactly what it does," Gentges said. "We store gas during the summer months when gas is cheaper than if you were to go out in the middle of the coldest months of the winter and try to buy gas."
In addition to some potential cost savings, the expansion will also provide a little more revenue for near by communities. Next year the company's local taxes are expected to double to more than $2 million.
With the addition of the Cold Springs One facility, TransCanada has hired two new fulltime staff members and three seasonal employees. The new storage system is expected to be operational later this week.
During Thursday's dedication ceremony the company contributed $15,000 to several local organizations. The Cold Springs/Excelsior Fire Dept., Blue Lake Township Fire Dept., and the Kalkaska County Commission On Aging all received $5,000.
"We are very excited to be able to help that many more people with these funds," said Gay Rowell, director of the KCCOA. "This year we see it being just as large of a demand as it has been in the past."
Previously in the week TransCanada also made contributions to other organizations including the Boys Scouts and the Mancelona Lighthouse Food Pantry.
