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FERC Issues Broad Run Expansion Project Partial Notice to Proceed

FERC has granted Tennessee Gas Pipeline LLC (TGP) permission to make modifications to two existing compressor stations in Kentucky as part of its proposed Broad Run Expansion Project, but it said the company may not yet begin construction elsewhere.

In a partial notice to proceed with construction issued Wednesday, the Federal Energy Regulatory Commission said TGP could begin modifications at the Clay City Compressor Station (No. 106) in Powell County, KY, and at the Catlettsburg Compressor Station (No. 114) in Boyd County, KY [CP15-77]. The order also stipulates that TGP may not "commence construction or begin any site preparation activities at any other Broad Run Expansion Project facilities at this time."

Despite the stipulation, FERC said when TGP filed its plans last September, it included all of the information necessary to meet the agency's pre-construction conditions for the $406.4 million project. "In addition, we have confirmed the receipt of all federal authorizations relevant to the approved activity herein," the Commission said.

Last week, FERC denied a request for a stay over the project and allowed TGP to continue with tree clearing activities. The agency issued a favorable environmental assessment for the project last March.

The Broad Run project is designed to increase the capacity of TGP's pipeline system by adding incremental compression and associated facilities, allowing TGP to provide long-term firm transportation service to project shipper Antero Resources Corp., according to the application filed in early 2015.

Antero is the sole shipper on the Broad Run Expansion, which would provide the producer with 200,000 Dth/d of transportation from TGP's Broad Run lateral in West Virginia to delivery points along the Gulf Coast. Last October, Antero filed a request for FERC to intervene in TGP's request for a rehearing of FERC’s order authorizing project construction and operation, arguing in support of the lower fuel rates TGP has proposed.

In its original application, TGP had requested FERC approval by Jan. 31, 2016, to meet a planned Nov. 1, 2017 in-service date.

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