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Tennessee Offering Capacity on Cameron LNG Terminal Supply Pipe

Nearly two months after securing Mitsubishi Corp. as its foundation shipper, Tennessee Gas Pipeline is holding an open season through Aug. 9 for its Southwest Louisiana Supply Project, which is designed to provide transportation from various supply basins in Ohio, Pennsylvania, Texas and Louisiana to Cameron Interstate Pipeline, which connects directly to the proposed Cameron LNG export terminal in Hackberry, LA.

The proposed pipeline project would provide firm service from "mutually agreeable" Zone 4 receipt points located between Tennessee's Station 219 in Pennsylvania and MLV 200; Zone 0 receipt points between MLV 409A and Station 40 in Natchitoches, LA; and receipts points on Tennessee's 800 Line in the Delhi/Perryville, LA, area near MLV 837 to the delivery point at Tennessee's existing interconnect with Cameron Interstate Pipeline in southwest Louisiana.

Tennessee said it anticipates the amount of firm transportation quantity available under the project to be about 1 Bcf/d. As the foundation shipper, Mitsubishi has signed on for 600,000 Dth/d (see NGI, May 27), and an anchor shipper has contracted for an additional 300,000 Dth/d.

In May, Sempra Energy, Mitsubishi Corp. and Mitsui & Co. Ltd. signed 20-year tolling capacity and joint venture agreements to support the development, financing and construction of a liquefied natural gas (LNG) export facility at the site of the Cameron LNG receipt terminal (see NGI, May 20). The tolling agreements subscribe the full nameplate capacity of the three-train, 13.5 million tonne per annum (mtpa) facility that would provide an export capability of 12 mtpa of LNG, or about 1.7 Bcf/d, and the full regasification capacity of 1.5 Bcf/d.

Construction of the export terminal is expected to start in 2014 with the first phase of liquefaction operations to commence in the second half of 2017. Full commercial operation of all three trains is expected in 2018. The anticipated in-service date of the Southwest Louisiana Supply Project is Sept. 1, 2017.

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