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FERC OKs Most of Tennessee's Northeast Upgrade for Service

Tennessee Gas Pipeline (TGP) Tuesday got the go-ahead from FERC to place into service three pipeline loops associated with its Northeast Upgrade Project, which will carry an additional 636,000 Dth/d of natural gas from the Marcellus Shale to Northeast markets.

The Kinder Morgan pipeline got clearance from the Federal Energy Regulatory Commission (FERC) to start up Loops 317, 321 and 325. The agency approved Tennessee's request to place Loop 319 in service earlier this month (see Shale Daily,Oct. 7).

The agency letter order did not approve placing into service TGP's proposed certificated Mahwah Meter Station, compressor stations, or Loop 323 in Pennsylvania and New Jersey.

In late September, TGP sought and received variance authority to install certain temporary facilities at the Mahwah Meter Station, as well as completed certificated facilities, in order to provide the full amount of project capacity to shippers by Nov. 1, the start of the winter heating season (see Shale Daily,Sept. 26).

The project shippers are Chesapeake Energy Marketing Inc. (429,300 Dth/d) and Statoil Natural Gas LLC (206,700 Dth/d), under contract terms of at least 20 years (see Shale Daily,Sept. 17). The pipeline said it would remove the temporary meter station facilities in Mahwah, NJ, from service when the certificated Mahwah Meter Station facilities are completed. TGP said it expects to complete construction and place into service the certificated Mahwah Meter Station by May 1.

The project, which FERC approved in mid-2012, will allow additional Marcellus gas to be transported along Tennessee's 300 Line to an interconnect with Algonquin Gas Transmission in Mahwah to serve growing markets in the Northeast (see Shale Daily,May 31, 2012). To create the additional firm capacity, Tennessee's project includes five 30-inch diameter pipeline loops and modifications to four existing compression stations.

Unconventional oil and gas production out of northeast Pennsylvania has more than doubled in the past two years, from 2.22 Bcfe/d in 1H2011 to 5.76 Bcfe/d in the first six months of this year, according to Department of Environmental Protection data.

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