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Tennessee's Southwest Louisiana Supply Project Gets Favorable EA

FERC staff has issued a favorable environmental assessment (EA) for Tennessee Gas Pipeline Co. LLC's (TGP) Southwest Louisiana Supply Project, which would provide transportation from various supply basins in Ohio, Pennsylvania, Texas and Louisiana to Cameron Interstate Pipeline, which connects directly to the Cameron LNG Terminal in Louisiana, now under construction.

The project would provide 295,000 Dth/d of firm service on the pipeline's 800 Line. TGP plans to increase flexibility on its Line 800-1 through auxiliary and appurtenant installations and replacements, according to the Federal Energy Regulatory Commission.

"All of the modifications, upgrades, or replacements would be located within existing authorized facilities," Commission staff said. Modifications will include piping for bidirectional operations at three existing compressor stations: Alexandria Compressor Station CS 827 in Rapides Parish, LA; Winnsboro Compressor Station 834 in Franklin Parish, LA; Grenada Compressor Station 847 in Yalobusha County, MS; as well as modifications for operational flexibility at the existing Kinder Compressor Station 823 in Jefferson Davis Parish, LA.

Kinder Morgan Inc.'s TGP plans to construct a 2.4-mile, 30-inch diameter pipeline lateral in Madison Parish, LA; a 1.4-mile, 30-inch diameter lateral in Richland and Franklin parishes, LA; five meter stations; one new compressor station in Franklin Parish, and replace a gas turbine engine at an existing compressor station in Rapides Parish.

TGP has signed a binding, 20-year firm transportation agreement with Mitsubishi Corp. of Japan to ship 600,000 Dth/d of natural gas earmarked for the proposed Cameron LNG liquefaction facility in Hackberry, LA. Cameron LNG's first phase is expected to enter service during 2018 (see Daily GPIJuly 18). Mitsubishi will serve as the foundation shipper for the Southwest Louisiana Supply Project. Kinder does not own Cameron Interstate Pipeline or the Cameron LNG facility.

Sempra Energy, Mitsubishi and Mitsui & Co. Ltd. have signed 20-year tolling capacity and joint venture agreements for the terminal.

"TGP's unique footprint, connecting key conventional and shale supply areas from the South Texas Eagle Ford to the Utica and Marcellus in Ohio and Pennsylvania, and access to the Haynesville Shale supply area and the Perryville Hub in Louisiana, makes our Southwest Louisiana Supply Project an ideal fit to serve the future supply needs of Mitsubishi Corp. and the planned Cameron LNG complex," TGP President Kimberly Watson has said (see Shale DailyMay 23, 2013).

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