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.