FERC on Friday issued a favorable environmental assessment (EA) for PetroLogistics Natural Gas Storage to expand the working gas capacity of its Choctaw Hub facility near Baton Rouge, LA, by more than 10 Bcf.

“Approval of the project, with appropriate mitigating measures, would not constitute a major federal action significantly affecting the quality of the human environment,” the staff of the Federal Energy Regulatory Commission (FERC) concluded [CP11-50]. The favorable EA puts it one step away from receiving a FERC certificate, which could come within weeks.

PetroLogistics is seeking the go-ahead to expand the working capacity of the Choctaw Hub facility to 26.6 Bcf from its existing 16 Bcf. The project calls for the addition of two compressor units totaling 27,000 hp; a 13-mile, 30-inch diameter expansion header pipeline; and a number of interconnections with interstate and intrastate pipelines. The Louisiana-based storage company has targeted the expansion for an in service date later this year.

When the expansion is completed, the Choctaw Hub will have maximum withdrawal capability of more than 1.2 Bcf/d, and maximum injection capacity in excess of 700 MMcf/d.

Choctaw Hub currently has bidirectional interconnects with three interstate pipelines — Florida Gas Transmission, Texas Eastern Transmission and Southern Natural Gas — and two intrastate pipelines (CrossTex LIG Pipeline and Bridgeline Gas). The expansion will add the Acadian Haynesville extension, providing for access not only to additional intrastate market, but also to the Perryville Hub and associated pipelines (Texas Gas Transmission, ANR Pipeline, Columbia Gas Transmission, Trunkline Gas, Transcontinental Gas Pipe Line and Tennessee Gas) via backhaul transportation.

Choctaw Hub is situated in the center of both supply and market centers, and is near the Henry Hub, one of the most liquid trading points in North America. Both traditional and unconventional supply converge at the Choctaw site, according to PetroLogistics.

The hub sits at the gateway to the Mississippi River Corridor market, an approximate 3 Bcf/d market with significant industrial, power generation, process and temperature sensitive load, the company noted. Choctaw interconnects with the intrastates serving this load, as well as the interstate pipelines serving the ever-growing gas-fired power generation markets in the southeastern United States.

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