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El Paso Corp. Plans New Storage Facility In Arizona

Underground storage site near Phoenix could hold 3.5 billion cubic feet of gas.

HOUSTON (AP) - Natural gas company El Paso Corp. said Thursday it's planning a new storage facility in Arizona to help supply growing demand in Phoenix.

The company said it plans to build the underground facility 40 miles southeast of Phoenix, with a possible capacity of 3.5 billion cubic feet of gas. It would feed up to 350 million cubic feet of gas per day through nearby pipelines, able to meet the electric needs of 735,000 homes daily.

Financial terms of the plan were undisclosed.

El Paso said it will file an application for the project with the Federal Energy Regulatory Commission in the third quarter of 2007, and construction could begin in 2008. It could begin operations by mid-2010 and be fully operational by 2011 or 2012.