High Point Gas Transmission LLC (HPGT) recently filed at FERC to abandon its Venice to Toca natural gas pipeline for sale to Cayenne Pipeline LLC and conversion to natural gas liquids (NGL) service.
The converted system would carry Y-grade NGLs. The non-jurisdictional work to convert the pipeline includes modification or replacement of existing valves and other appurtenances, as well as the addition of meters and thermal relief devices, HPGT said [CP16-474].
The project includes the abandonment-by-sale of 61.3 miles of existing 12- to 22-inch diameter pipeline and associated meters, valves and other appurtenances. The project begins at the Venice Gas Processing Plant, which is operated by Targa Midstream Services LLC and located near Venice, LA. The pipeline travels through Plaquemines Parish, LA; passes under the Mississippi River; and continues into St. Bernard Parish to the Toca Gas Processing Plant, which is operated by Enterprise Products Partners LP and located near Toca in St. Bernard Parish, LA.
The Venice to Toca system currently carries dry gas from the Venice plant to an interconnect with the HPGT system and the Southern Natural Gas Co. LLC system near Toca. In the past few years, all of the gas transported in the system by HPGT has been gas that has been processed at the Venice Plant for the extraction of NGLs prior to being delivered to HPGT at the outlet of the Venice plant.
The system has a capacity of about 250,000 Dth/d. Currently, only one shipper transports gas under a firm, month-to-month contract with the Venice plant as a receipt point and the HPGT-Southern interconnect as the delivery point. The maximum daily quantity under the firm agreement is 10,000 Dth/d. The rate is significantly discounted; the shipper is being charged a rate of $0.0200/Dth as compared the HPGT's recourse rate of $0.2921/Dth. All other shippers that use the Venice to Toca system do so under interruptible contracts at the same discounted rate, HPGT told the Federal Energy Regulatory Commission.
HPGT is not the only outlet for residue gas at the outlet of the Venice plant. Three other major pipelines are connected to the plant: Texas Eastern Transmission LP; Gulf South Pipeline Co. LP; and Columbia Gulf Transmission LLC, HPGT said. "These other pipelines have ample capacity to receive all of the residue gas that is available at the outlet of the Venice Gas Processing Plant," it said.
"The shippers that have residue gas available at the outlet of the Venice Gas Processing Plant have their gas delivered into the most favorable market. As a result, the gas flows on the Venice to Toca Pipeline System vary significantly on a day-to-day basis. On many days, no or very little gas flows, while on other days, the demand for capacity is much greater. But, even when demand for capacity on the Venice to Toca Pipeline System is high, the nominations are still far less than the capacity of the system."
HPGT is asking for abandonment authorization by Dec. 31.