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FERC Launches Environmental Review of Transco Lateral to Supply Louisiana Methanol Plant

FERC plans to conduct an environmental review of Transcontinental Gas Pipe Line Co. LLC's (Transco) proposed St. James Supply Project, a methane-to-methanol facility under construction in Louisiana that could produce 1.8 million metric tons/year of commercial-grade methanol.

In a notice Monday, the Federal Energy Regulatory Commission said staff would complete an environmental assessment for the project by July 24 [CP17-58]. The Commission also set Oct. 22 as a 90-day deadline for federal agencies to complete any necessary reviews of the project.

Transco in February submitted an application to FERC for a certificate of public convenience and necessity for the project. The St. James Supply Project would enable the Williams affiliate to provide 161,500 Dth/d of firm transportation capacity from its existing Station 65 Zone 3 Pool in St. Helena Parish, LA, southward along Transco's Southeast Louisiana Lateral.

A new interconnection would enable Transco to deliver natural gas to a $1.85 billion methanol manufacturing complex in St. James Parish being built by Yuhuang Chemical Inc. (YCI). Transco and the Chinese-based YCI have executed a binding precedent agreement for all of the project's firm transportation service for a 20-year primary term. YCI plans to have the methanol plant entered into service in 4Q2019.

The St. James Supply Project calls for constructing a 0.72 mile, 20-inch diameter pipeline, the St. James Supply Lateral. It also calls for constructing the Old River Road metering and regulating (M&R) station at the interconnection with the YCI plant, the Cajun Road M&R station on Transco's mainline in Pointe Coupee Parish, LA, and modifications to Transco's existing Compressor Stations 63 and 65 to allow for bi-directional flow.

Transco told FERC that it estimates the project facilities would cost $33.5 million.

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